Singapore's central bank has issued guidelines to discourage cryptocurrency trading by the general public. The central bank emphasized that “the trading of cryptocurrencies is highly risky and not suitable for the general public.”
Singapore's Central Bank Discouraging Crypto Trading by the General Public
The Monetary Authority of Singapore (MAS), the nations central bank, announced Monday that it has issued guidelines “to discourage cryptocurrency trading by [the] general public.”
The guidelines restrict cryptocurrency trading service providers from promoting their digital payment token (DPT) services to the general public. DPT is commonly known as cryptocurrency, the MAS clarified.
The central bank explained that companies should not market or advertise crypto services in public areas in Singapore or use third parties, such as social media influencers, to promote cryptocurrency services to the general public.
Companies can only market or advertise crypto services on their own corporate websites, mobile applications, or official social media accounts.
Loo Siew Yee, the MAS assistant managing director for policy, payments, and financial crime, noted that the central bank “strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases.” However, she stressed:
“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.”
The MAS emphasized that crypto service providers “should conduct themselves with the understanding that trading of DPTs is not suitable for the general public.”
The Singaporean central bank has repeatedly warned that cryptocurrency trading is “highly risky and not suitable for the general public” given how the prices of these coins are subject to sharp speculative swings.
About 170 companies have applied to provide crypto services in Singapore. However, more than 100 of them have either been turned down or withdrawn their applications.
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