Authorities in Singapore have stepped up their regulatory oversight of the crypto industry, with new guidelines prohibiting crypto service providers from promoting their services and products to the public.
Singapore bars public crypto advertisementsAccording to the Monetary Authority of Singapore (MAS), the public needs to be wary of crypto assets. At the same time, digital payment token (DPT) providers can only use platforms owned by them to advertise their products.
As such, service providers of this nature can only use their websites, apps, or social media for promotional purposes. Not only that, but they must also ensure that their promotional materials highlight the risks that might be attached to investing in the crypto space.
“DPT service providers should not portray the trading of DPTs in a manner that trivialises the high risks of trading in DPTs, and should not promote their DPT services in public areas in Singapore or through any other media directed at the general public in Singapore. This includes placing of any form of advertisements or promotional materials in public areas such as Singapore public transport, public transport venues, broadcast media or periodical publications, third party websites, social media platforms, public events or roadshows.”
Aside from prohibiting public crypto advertisements, the regulator also intends to bar crypto-enabled ATMs from operating within the country. According to MAS, enabling easy access to these machines can “mislead the public to trade in DPTs on impulse, without considering the risks of trading in DPTs.”
This move will undoubtedly affect several crypto businesses operating in the country.
Singapores stringent crypto regulationsThis is not the first time Singapore has publicly maintained a harsh stance towards the crypto industry. The Asian country has repeatedly made moves that look to stifle the growth of the burgeoning industry in its space.
Binance, the largest crypto exchange by trading volume, was forced to leave the country after it could not meet the countrys anti-money laundering regulations.
Over 100 crypto firms in the country who have filed for licenses from the regulator have also had to either withdraw their applications or see them rejected.
Regulators are targeting crypto advertsWhile regulations surrounding the crypto industry generally might still be hazy, regulators are keen on making sure that crypto advertisements reflect the inherent risks attached to investing in the space.
The United Kingdoms advertising watchdog, Advertising Standards Authority, as recently as December banned seven crypto ads for failing to “illustrate the risk of the investment.”
Aside from this, the leading search engine company in the world, Google, and the foremost social media site, Facebook, lifted their ban on crypto ads last year. However, other tech companies like TikTok still ban crypto ads on its platform.