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Despite having one of the most established crypto regulatory frameworks, Singapore is still big on investor protection. The country recently barred firms operating in the cryptocurrency sector from posting advertisements in public places.
The Monetary Authority of Singapore (MAS) has issued a new set of guidelines to be used by digital payment token (DPT) providers. Under these guidelines, DPTs will be barred from marketing their services to the public.
MAS on protecting investors
Besides imposing this restriction, the MAS also warned the public of the highly risky nature of the crypto sector. To ensure that uninformed members of the public are not lured towards making investments in areas they do not understand, the MAS has barred crypto ads on public transport spaces, public websites, social media platforms, broadcast media and print media.
The new rules will apply to the crypto service providers registered to operate in the country and those still in the transitional period.
“MAS stresses that DPT service providers should conduct themselves with the understanding that trading of DPTs is not suitable for the general public. These Guidelines set out MAS’ expectation that DPT service providers should not promote their DPT services to the general public in Singapore,” the statement read.
The MAS has also instructed DPTs from setting up automated teller machines in public areas. Crypto ATMs have been on the rise globally, and they make transactions between crypto and cash easier. However, DPTs have also been permitted to promote their services on their company websites and mobile apps.
Issue of crypto ads
The MAS’s decision comes when crypto trading activities are on the rise. The popularity of cryptocurrencies has been high, and this has mainly been attributed to a rise in crypto advertisements.
Regulators globally have been cracking down on crypto advertisements. Most of these regulators have stated that crypto advertisements could affect the investment choices of those who have limited knowledge about the nature of the crypto sector.
Regulators have also expressed concern over how crypto advertisements hide the details of the high risks associated with investing in cryptocurrencies. Most of these advertisements usually focus on the high returns stemming from the sector.
Regulators in the United Kingdom have also banned crypto ads in public spaces. The ban came after Floki Inu, one of the popular meme coins, posted a major ad on the London public transport sector before being ordered to take it down.
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