Crypto trading should not be publicized, under new MAS guidelines. MAS said on Monday (Jan 17), that the trading of digital payment tokens (DPTs). Also known as cryptocurrencies, is extremely risky and not suitable for the general public. The MAS issued a new set of guidelines to rein in cryptocurrency service providers. As part of its ongoing efforts to regulate the cryptocurrency industry.
The recommendations, which are effective immediately. Are intended to limit the promotion of cryptocurrency trading to the general public.
The Monetary Authority of Singapore (MAS) has stated that cryptocurrency service providers. Should not market or advertise their services in Singapore’s public areas. Such as through advertisements on public transportation, public transportation venues, public websites. Also, social media platforms, and broadcast and print media, among other things.
They should also avoid enlisting the help of third parties. Such as social media influencers, to advertise their products and services.
They are only permitted to market or advertise on their own company websites. Mobile applications, and official social media profiles.
According to the MAS, DPT service providers should not be required. To provide physical automated teller machines (ATMs). Cryptocurrency ATMs allow users to connect with their bitcoin accounts. In order to purchase and sell cryptocurrency, and there are now fewer. Than 10 ATMs in the country. The MAS, on the other hand, has not specified any sanctions for non-compliance.
The recommendations come as cryptocurrency gains momentum
In light of bitcoin’s continued popularity among investors around the world. Notably in Singapore, which is widely considered to be a vital blockchain hub. By many organizations, the recommendations come at a timely period.
According to the Advertising Standards Authority of the United Kingdom. Cryptocurrency advertisements from seven companies banned in December 2021. After it determined that the companies were “irresponsibly taking advantage of consumers’. Inexperience and neglecting to highlight the risk of the investment.”
According to data provided by Bloomberg, the greatest. Daily trading volume of crypto assets vs the Singapore dollar in Singapore. From January to November 2021 was less than 1 percent. Of the average daily turnover on the Singapore Exchange.
However, market observers have pointed out that the emergence of blockchain technology. And cryptocurrencies has resulted in increasing interest among retail investors. As a result of the rise of these technologies.
Important regulatory milestones achieved in the cryptocurrency industry. In Singapore last year, according to the government.
In total, the MAS issued four licenses for the provision of DPT services. Which also selected from among 180 applications.
The newly chosen foursome includes the Singapore-based fintech company Fomo Pay. The Australian cryptocurrency payments service TripleA. Also, the United Kingdom-based cryptocurrency exchange Independent Reserve. And DBS Bank’s brokerage arm DBS Vickers.
Independent Reserve Singapore, a digital currency and Crypto trading exchange
After receiving its license in October 2021, Independent Reserve Singapore. Which provides digital asset exchange and over-the-counter trading services. To individuals and institutions in the country. Started a comprehensive marketing campaign to promote its services.
The company’s cryptocurrency advertisements displayed on screens. In a number of locations, including Raffles Place and a fleet of Grab automobiles.
On Monday, Mr Raks Sondhi, the managing director of Independent Reserve Singapore. Told The Straits Times that the company will “revisit our retail marketing initiatives.” To ensure also that they were in compliance with the new MAS regulations.
A representative for crypto-exchange site Luno, which has also applied for a DPT license. And is currently studying the new standards, said the company was reviewing them.
