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Singapore is a popular location for cryptocurrency companies due
to a comparatively clear regulatory and operating environment
and is among the forerunners globally in developing a formal
licensing framework.
But the city-state's authorities have repeatedly warned that
trading in digital payment tokens (DPT), or cryptocurrency, is
highly risky and not suitable for the general public, as they
are subject to sharp speculative swings.
The new guidelines clarify the expectations of MAS that
companies should not engage in marketing or advertising of DPT
services in public areas in Singapore or through the engagement
of third parties, such as social media influencers, to promote
DPT services to the general public.
They can only market or advertise on their own corporate
websites, mobile applications or official social media accounts.
MAS said it has received about 180 applications for licences to
provide DPT services, of which five have been awarded
in-principle approvals. Sixty have withdrawn their applications
and three have been rejected. MAS did not disclose the status of
the other applications.
"MAS strongly encourages the development of blockchain
technology and innovative application of crypto tokens in
value-adding use cases," Loo Siew Yee, MAS Assistant Managing
Director (Policy, Payments and Financial Crime), said in a
statement.
"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
trivialises the high risks of trading in DPTs, nor engage in
marketing activities that target the general public."
(Reporting by Chen Lin in Singapore; Writing by Aradhana
Aravindan; Editing by Ed Davies)
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