Singapore is taking steps to protect the general public from being hit by what it regards as the highly risky trading of cryptocurrencies like bitcoin and ethereum. The Monetary Authority of Singapore (MAS) issued a set of guidelines on Monday (17th January 2022). Under the new guidelines from the central bank, crypto service firms will not be allowed to advertise in public areas, including social media.
Here are a few points mentioned in the Guidelines on provision of digital payment token services to the public, that explain the gist of the document. The guidelines are divided into 4 sections-
Introduction – the introduction informs the general public, how trading cryptocurrencies is risky and how the government has always warned its citizens against it.
Promotion of DPT services to the general public– Cryptocurrency service providers are not allowed to portray trading of cryptocurrencies in a manner that shows that it is ‘not risky’. Cryptocurrency service providers cannot partner with social media influencers or other third-party websites to promote their services.
Provision of DPT services in public areas- Cryptocurrency service providers should not provide physical ATMs in public locations that allow access to their services as it may cause citizens to trade on impulse.
Provision of services relating to DPT-related products– Cryptocurrency services should not promote Payment Token Derivatives as a convenient alternative to DPTs and MAS only regulates PTDs that are offered by Approved exchanges.
Despite the new guidelines, the managing director of the Monetary Authority of Singapore (MAS), Ravi Menon said previously that the country can see “significant economic possibilities” that can be achieved with the help of crypto or tokenized economy and that cryptocurrencies have the potential to be widely adopted.
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