MAS bans public cryptocurrency promotion in Singapore

The Monetary Authority of Singapore (MAS) has issued new guidelines barring digital currency token (DPT) companies and cryptocurrency service providers from promoting their services to the general public in the island state.

This means DPT firms won’t be allowed to run their ad campaigns in public areas such as public transport vehicles/venues, public websites, social media platforms, broadcast and print media, or on automated teller machines (ATMs).

The amendments are yet to come into force.

Also Read: ICYMI: Singapore just gave a nod of confidence to cryptocurrency

The new guidelines also discourage service providers from engaging third parties, such as social media influencers, to promote DPT services to the general public.

DPT service providers include payment institutions, banks and other financial institutions, and applicants under the Payment Services Act (PS Act). The services involve the buying or selling of DPTs or facilitating their exchange. 

The central bank’s move is to protect consumers from trading DPTs without knowing cryptocurrencies’ high risk and speculative nature.

The Singapore FinTech Association (SFA) and SFA Payments Group (SFA-PG) welcomed the move. 

“Opening the doors to innovation also requires a system of checks and balances to be put in place before consumers gain full awareness and understanding of the new tools,” said Shadab Taiyabi, President of SFA. “[It] does not signal a shift in Singapore’s approach to DPT’s. Rather, we see this as further evidence of Singapore’s long-term commitment to the industry.”

For years, Singapore has consistently established itself as the fintech hotbed of the world. Its Payment Services Act (PSA) offers a regulatory guideline for companies handling activities ranging from digital payments to trading tokens such as Bitcoin, Ethereum and Litecoin. The law hands the MAS with supervisory powers for cybersecurity risks, money laundering, and terrorism financing.

Also Read: Singapore’s new payments law is a boon for the crypto community

However, last September, MAS ordered the world’s biggest cryptocurrency exchange platform, Binance.com, to stop its services in the country as it was regarded among 699 companies that the MAS has not regulated.

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