The Financial Authority of Singapore (MAS) on Monday issued tips that restrict cryptocurrency buying and selling service suppliers from selling their providers to most people, as a part of a bid to defend retail traders from potential dangers.
Singapore is a well-liked location for cryptocurrency firms on account of a relatively clear regulatory and working setting and is among the many forerunners globally in growing a proper licensing framework.
However the city-state’s authorities have repeatedly warned that buying and selling in digital fee tokens (DPT), or cryptocurrency, is extremely dangerous and never appropriate for most people, as they’re topic to sharp speculative swings.
The brand new tips make clear the expectations of MAS that firms mustn’t have interaction in advertising and marketing or promoting of DPT providers in public areas in Singapore or by way of the engagement of third events, resembling social media influencers, to advertise DPT providers to most people.
They will solely market or promote on their very own company web sites, cellular purposes or official social media accounts.
MAS mentioned it has acquired about 180 purposes for licences to offer DPT providers, of which 5 have been awarded in-principle approvals. Sixty have withdrawn their purposes and three have been rejected. MAS didn’t disclose the standing of the opposite purposes.
“MAS strongly encourages the event of blockchain know-how and progressive utility of crypto tokens in value-adding use circumstances,” Bathroom Siew Yee, MAS Assistant Managing Director (Coverage, Funds and Monetary Crime), mentioned in an announcement.
“However the buying and selling of cryptocurrencies is extremely dangerous and never appropriate for most people. DPT service suppliers ought to subsequently not painting the buying and selling of DPTs in a way that trivialises the excessive dangers of buying and selling in DPTs, nor have interaction in advertising and marketing actions that concentrate on most people.”