Singapore Jan. 18 (BNA): The Monetary Authority of Singapore (MAS) on Monday issued guidelines restricting cryptocurrency trading service providers from promoting their services to the general public, as part of an effort to protect retail investors from potential risks.
Singapore is a popular location for crypto companies due to its relatively clear regulatory and operational environment and is among the first globally to develop a formal licensing framework, Reuters reported.
But city authorities have repeatedly warned that trading digital payment tokens (DPT), or cryptocurrency, is extremely risky and unsuitable for the general public, as they are subject to sharp speculative fluctuations.
The new guidelines clarify MAS’ expectations that companies should not engage in marketing or advertising of DPT services in public places in Singapore or by engaging third parties, such as social media influencers, to promote DPT services to the general public.
They can only market or advertise on corporate websites, mobile applications, or official social media accounts.
MAS said it has received about 180 applications for licenses to provide DPT services, five of which have been granted initial approvals. Sixty withdrew their requests and refused three of them. MAS has not disclosed the status of other applications.
“MAS strongly encourages the development of blockchain technology and the innovative application of crypto-tokens in value-added use cases,” Lu Seiu Yi, Associate Assistant General Manager (Policy, Payments and Financial Crime) said in a statement.
“But cryptocurrency trading is very risky and not suitable for the general public. DPT providers should therefore not portray DPT trading in a way that minimizes the high risk of DPT trading, nor engage in marketing activities aimed at the general public.”
MI