Regulators in Singapore have required that crypto service providers not display advertisements that reduce the high risks associated with such transactions.
Yesterday, the Monetary Authority of Singapore issued guidelines for cryptocurrency service providers, calling on the general public to stop broadcasting advertisements.
The media statement, published with the guidelines, is intended to discourage speculation on various assets that are known to be unstable by regulators and therefore unsuitable for public investors. I confirmed it was there.
From now on, crypto service providers in Singapore will not be allowed to promote their products on retail platforms. These include physical ATMs in public places, physical advertisements, and online platforms.
The updated guidelines also require that affected providers not be allowed to broadcast advertisements that mitigate the high levels of risk associated with trading these assets.
“”MAS highly recommends the development of blockchain technology and innovative applications of crypto-tokens for value-added use cases. However, cryptocurrency trading is very risky and not suitable for the general public. Therefore, DPT service providers should not portray DPT transactions or engage in marketing activities aimed at the general public in a way that ignores the high risks of DPT transactions. ” Lu Siu Yi, Assistant General Manager of MAS, said:
Cryptocurrency companies can promote their services through their websites, official social media platforms or their mobile apps.
Agreeing is not that easy
Singapore’s stance on cryptocurrencies and the approval of companies that provide them have increased in recent months. Of the 180 companies that applied for the license, only 5 were approved. Three companies were rejected and 60 companies withdrew their applications.
The country’s central bank has repeatedly warned investors not to put their assets into cryptocurrency trading.
At the FinTech Festival in Singapore in early November last year, managing director MAS Ravimenon questioned the status of crypto as cash. Menon added that historically, crypto has performed rather poorly as a medium of exchange and as a store of value, and digital assets have failed on many issues.
“”Cryptocurrencies do not function well as a medium of exchange, store of value, or a unit of account. MAS prefers to call them ciphers, which are the more precise technical names. ” He said.
Singapore’s strict crypto policy drove Binance, the world’s largest exchange, out of the country in December. Binance Asia Services, the Asian division of the exchange, has completed its efforts that began in 2020 to obtain approval. It has withdrawn its encryption permit application and plans to abandon its domestic activities entirely by February 13th.