Singapore cbank issues guidelines to discourage crypto trading by public

Cryptocurrency representations of Ripple, Bitcoin, Ethereum, and Litecoin are displayed on a PC motherboard in this illustration on February 14, 2018. REUTERS/DadoRuvic/Illustration // File Photo

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SINGAPORE, Jan 17 (Reuters) – The Monetary Authority of Singapore (MAS) will serve the general public on Monday as part of an effort to protect retail investors from potential risks. We have issued guidelines to limit ads.

Singapore is a popular location for crypto companies due to its relatively clear regulatory and operational environment and is one of the world leaders in developing formal licensing frameworks.

However, city-state officials have repeatedly warned that trading digital payment tokens (DPTs) or cryptocurrencies is not suitable for the general public due to the high risks and speculative volatility.

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The new guidelines state that companies must not engage in marketing or advertising of DPT services in public areas of Singapore or in order to promote DPT services to the general public by engaging third parties such as social media influencers. I have clear expectations.

They can only market or advertise on their company websites, mobile apps or official social media accounts.

MAS said it has received about 180 license applications to provide DPT services, five of which have been approved in principle. 60 people withdrew their applications and 3 were rejected. MAS did not disclose the status of other applications.

“MAS strongly encourages the development of blockchain technology and innovative applications of crypto tokens for value-added use cases,” said Lu, Assistant General Manager of MAS (Policy, Payments and Financial Crime). Seo Yi said in a statement.

“But cryptocurrency transactions are very risky and not suitable for the general public. Therefore, DPT service providers describe DPT transactions in a way that ignores the high risks of DPT transactions. Do not engage in marketing activities aimed at the general public.”

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Reporting by Chin Lin in Singapore by Aradana Aravindan and Editing by Ed Davies

Our Standard: The Thomson Reuters Principle of Trust.

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