Singapore has asked cryptocurrency service providers not to promote or advertise their offerings to the general public. This applies to businesses such as banks and payment institutions that offer such services, and will be further extended to include the transfer of cryptocurrencies and the provision of wallet services.
The Monetary Authority of Singapore (MAS) issued new guidelines on Monday emphasizing that Digital Payment Tokens (DPT), or commonly referred to as cryptocurrency, service providers must not promote their offerings to locals.
This effectively means that these providers cannot market or advertise their services in public areas, for example through advertisements on public transport, websites, social media, broadcast and print media, and the provision physical ATMs. Promotional banners or pop-up advertisements, for example, on social media platforms should not be used to promote DPT services.
Engaging third parties, including social media influencers, to promote cryptocurrency services to the public in Singapore is also not permitted.
According to MAS, DPT service providers may only market or advertise on their own corporate websites, mobile apps or official social media accounts.
Services that fall under the guidelines include buying or selling cryptocurrencies as well as facilitating the exchange of cryptocurrencies. This classification will be expanded, when amendments to the Payment Services Act come into force, to include cryptocurrency transfers and the facilitation of TPD exchanges where service providers do not own cash or TPD. Amendments to the law were passed in parliament last January.
The law regulates DPTs for money laundering, terrorist financing and “technology risk”, MAS said.
The regulator said it had “consistently warned” that cryptocurrency trading involves high risk and is not suitable for the general public, as DPT prices are subject to “strong speculative swings”.
He noted that some cryptocurrency service providers had actively promoted their services through online and physical advertisements or through the provision of physical ATMs located in public areas. Convenient access to ATMs could mislead the public into trading DPTs “on a whim,” without fully understanding or considering the risks, MAS said.
Its Deputy Director General for Policy, Payments and Financial Crime, Loo Siew Yee, said: “MAS strongly encourages the development of blockchain technology and the innovative application of crypto tokens in value-added use cases. But cryptocurrency trading is very risky and not suitable for the general public, therefore TPD service providers should not present TPD trading in a way that trivializes the high risks of TPD trading or engage in marketing activities that target the general public.”
Noting that the cryptocurrency services industry is changing rapidly, MAS said it will continue to review the provision of DPT services to the public and may update its guidelines “if necessary”.
There are currently several ATMs across Singapore from which cryptocurrencies, including Bitcoin, can be bought and sold. Companies operating these machines include Daenerys & Co. and Bitcoin Exchange.
A study last August found that 67% of personal investors in Singapore have expanded their cryptocurrency portfolio, with 78% revealing they own Ethereum. Some 69% had Bitcoin and 40% carried Cardano, according to the survey, which was conducted by cryptocurrency platform Gemini, financial platform Seedly and cryptocurrency price monitoring site CoinMarketCap. .
