January 17, 2022
Singapore’s financial watchdog the Monetary Authority of Singapore (MAS) has warned cryptocurrency players not to promote their services to the public due to their high-risk nature, according to a guideline issued January 17.
The MAS said that the crypto players should understand that cryptocurrencies, also known as Digital Payment Tokens (DPTs), are not suitable for the general public, hence should not be advertised in public areas or in any other media directed at general public in Singapore.
“The public should not be encouraged to engage in the trading of DPTs,” the guideline stated.
The rules apply to the crypto service providers which have been granted licenses under the Payment Services Act, banks and other financial institutions providing cryptocurrency services in Singapore, or those which are currently operating under temporary exemptions.
Crypto firms are currently regulated primarily for money-laundering and terrorism financing risk, as well as technology risk under the city-state’s Payment Services Act (PS Act).
“DPT service providers may promote their services on their corporate website, mobile applications, or official social media accounts,” the MAS said, adding “but must not trivialize the risks of trading in DPTs in a manner that is inconsistent with or contradicts the risk disclosures under the PS Act.”
It further stated that the cryptocurrency service providers should not engage third parties, such as social media influencers or third-party websites, to promote their services to the general public in Singapore.
Crypto firms are also asked not to provide physical ATMs in public areas in Singapore. The same also applies to joint promotional campaigns to solicit new customers, it warned.
The MAS also said that given the fast-changing nature of cryptocurrencies, it will continue to review the rules governing crypto services as offered by the crypto service providers and may update the rules as necessary.
About the author
Tsering Namgyal is the chief content officer at Blockchain Asset Review.