Singapore’s central bank has issued guidelines to discourage the general public from trading in cryptocurrencies. The central bank emphasizes that cryptocurrencies are highly risky and unsuitable for the general population. Digital payment token (DPT) companies are only allowed to advertise on native websites and mobile apps under the new regulations.
On Monday, Singapore’s central bank, the Monetary Authority of Singapore (MAS), announced certain guidelines “to discourage cryptocurrency trading by the general public”.
In addition to its favorable regulatory and operating environment, Singapore is among the forerunners globally in developing a formal licensing framework for cryptocurrency companies.
A new set of guidelines restrict cryptocurrency exchanges from marketing their DPT services to the general public. DPTs are commonly referred to as a cryptocurrency, according to the MAS.
Companies should not market or advertise crypto services in public areas or use third parties, such as social media influencers, to promote cryptocurrency services to the general public, according to the central bank.
Crypto service providers are also prohibited from opening automated teller machines (ATMs) in public places via the new set of guidelines. Crypto services can only be marketed or advertised on a company’s website, mobile application, or official social media account.
Assistant managing director Loo Siew Yee, who oversees policy, payments and financial crime at the MAS, noted that the central bank “strongly encourages the development of blockchain technology and innovative use of crypto tokens in value-adding use cases.”
She emphasized, however, that crypto-trading is highly risky, and not appropriate for most people. The providers of DPT-trading services should not present DPT trading in such a way that trivializes the high risks involved, nor should they engage in marketing activities to reach the general public.
Crypto service providers must conduct themselves with the understanding that trading DPTs are not suitable for the general public, the MAS said.
Considering how cryptocurrency prices are subject to sharp speculative swings, Singapore’s central bank repeatedly warns the public that cryptocurrency trading is “highly risky.” The Singapore government has received about 170 applications for crypto services. However, more than 100 of these have yet to be approved or have been withdrawn.
