Key Takeaways:
- Don’t target general public for business, MAS tells crypto service providers.
- Service providers should only market their activities on their own websites, mobile applications, or official social media.
- The guidelines come after MAS has observed some service providers “actively promoting services.
The Monetary Authority of Singapore (MAS) on Monday issued guidelines stating companies in the cryptocurrency industry refrain from advertising their services to the public, in line with the city-state’s desire to curb retail speculation in volatile digital assets.
The guidelines come after MAS has observed some service providers “actively promoting” their services through online and physical advertisements, as well as via physical automated teller machines (ATM) in public areas.
Service providers should only market their activities on their own websites, mobile applications, or official social media accounts, the Monetary Authority of Singapore said Monday in a statement.
Also, read Over 100 Companies in Singapore Have Been Unable to Obtain Cryptocurrency Licenses
MAS strongly encourages the development of blockchain technology and the innovative application of crypto tokens in value-adding use cases. But the trading of cryptocurrencies is highly risky and not suitable for the general public,” said the central bank’s assistant managing director for policy, payments and financial crime Loo Siew Yee.
MAS consistently warned that trading DPTs is highly risky and not suitable for the general public, as the prices of DPTs are subject to Siew Yee.
“DPT service providers should therefore not portray the trading of DPTs in a manner that trivialises the high risks of trading in DPTs, nor engage in marketing activities that target the general public Sharp speculative swings,” it said.
Also, read OCBC Bank of Singapore Weighs Launching Crypto Services
The guideline will cover a broad array of businesses, from banks to payment service providers and crypto exchanges. At the moment, Singapore’s regulations are geared primarily towards protection against money laundering and terrorism financing. Digital payment tokens are not subject to consumer protection measures.
“We will continue to work with MAS and key stakeholders within the fintech community to ensure the smooth and positive development of the DPT environment and to drive innovation that brings true value and benefits to the Singapore community,” said SFA president Shadab Taiyabi.
