Monetary Authority of Singapore (MAS), the country’s central bank, issued a set of guidelines on January 17, 2022 aiming to discourage the general public from participating in cryptocurrency trading. The said guidelines advise cryptocurrency service providers to stop marketing their digital payment token (DPT) services to the general public of Singapore.
Although the MAS’ assistant managing director for policy, payments, and financial crime Loo Siew Yaw stated that the central bank encourages the development of blockchain technology and the use cases of digital assets, the trading of cryptocurrencies entails high risk.
‘But the trading of cryptocurrencies is highly risky and not suitable for the general public. DPT service providers should therefore not portray the trading of DPTs in a manner that trivializes the high risks of trading in DPTs, nor engage in marketing activities that target the general public’, said she.
In addition, the country’s financial regulator stated that these crypto providers should not utilize the public spaces of Singapore, including public events, newspapers, social media platforms, public transport venues and third-party platforms, among others. Crypto ATMs shall also be prohibited from public spaces since they are considered a form of advertisement.
However, they are still allowed to market their crypto services on their own corporate websites, official social media accounts and mobile applications.
Firms that are offering crypto services and products in Singapore are covered by the guidelines, including the companies licensed under Singapore’s Payment Services Act. While the central bank did not specify the penalties that will be imposed once a crypto service provider violates the guidelines, MAS will likely pay attention to crypto companies neglecting the country’s regulations. This, in turn, can prompt the central bank to remove their right to legally operate in Singapore.
This is not the first time Singapore has clamped down on cryptocurrencies. Due to the country’s tough regulation, more than a hundred companies applying for a license to offer digital payment token services have been rejected or withdrawn their applications.
‘Cryptocurrencies could be abused for money laundering, terrorism financing, or proliferation financing due to the speed and cross-border nature of the transactions’, a spokesperson for MAS argued.
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