Singapore’s Monetary Authority (MAS) issued guidelines on Monday that prohibit crypto trading service providers from advertising to the general public in an effort to protect retail investors from potential risks.
Due to its comparatively clean regulatory environment and operating environment, Singapore was among the first to develop a formal licensing framework for cryptocurrencies.
However, the city-officials state’s have frequently advised that trading digital payment tokens (DPTs) or cryptocurrencies is extremely dangerous and unsuitable for the general public due to their speculative nature.
According to new restrictions, firms are not allowed to advertise or promote DPT services in public places of Singapore, nor are they allowed to use social media influencers to promote DPT services to Singaporeans.
Advertising and marketing are only allowed on official social media accounts, mobile applications, or corporate websites/apps.
Singapore is an ideal location for cryptocurrency companies. The country’s economic regulations allow for a high level of security and stability in the crypto industry. In addition, the infrastructure in the country is top-notch and has brought many blockchain companies to the island.
Loo Siew Yee, Assistant Managing Director (Policy, Payments, and Financial Crime) at the Monetary Authority of Singapore, said in a statement that the bank supports the growth of blockchain technology and innovative applications of crypto tokens in value-added use cases.
On the other hand, he also added that Bitcoin and other digital currencies trading is extremely dangerous and not appropriate for the general public. Due to the significant risk associated with DPT trading, service providers should not misrepresent DPT trading.