Singapore’s financial authority mentions social media influencers cannot promote cryptocurrency trading services.
The Monetary Authority of Singapore, the country’s central bank and financial regulator, released new guidelines about cryptocurrency on January 17.
The goal of the guidelines is to discourage the public from trading Digital Payment Tokens, also known as cryptocurrencies, MAS added in introduction.
Singapore’s financial authority considers trading DPTs as “highly risky and not suitable for the general public” because prices are “subject to sharp speculative swings“.
As such, cryptocurrency trading should not be promoted in public areas of Singapore, such as in public transportation or broadcast media. Bitcoin ATMs in the street are also forbidden.
Trading cannot be presented in a manner that trivializes the risks either. In clear, trading Bitcoin or any other digital currency is not a harmless game but is closer to gambling.
The industry can promote their services on their own corporate communication platforms, like their own website or social media accounts. However, they cannot engage social influencers, third-party websites or joint promotional campaigns to solicit new customers.
MAS Assistant Managing Director, Ms Loo Siew Yee said, “MAS strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases“.
The guidelines are another market regulation from the authorities of Singapore, one of the world’s leading financial hubs. Cryptocurrency service providers need to be granted a license to operate in the market.
In October, Binance, the world’s largest cryptocurrency exchange, announced it would stop offering its services in Singapore by February 2022 as it withdrew its license request.