SINGAPORE: Service providers of digital payment token (DPT), or more commonly known as cryptocurrency, should not promote their services to the general public in Singapore, the Monetary Authority of Singapore (MAS) said on Monday (Jan 17). .
This includes the placement of any form of advertising or promotional materials in public areas, such as public transportation and related locations, public websites, print and broadcast media, and the provision of physical ATMs.
Service providers should also not engage third parties such as social media influencers for joint promotional campaigns to solicit new customers, the central bank said as it issued new guidelines to "discourage" cryptocurrency trading by the general public.
Under the guidelines, digital payment token service providers may only market or advertise on their own corporate websites, mobile apps, or official social media accounts.
“MAS strongly encourages the development of blockchain technology and the innovative application of crypto tokens in value-added use cases. But cryptocurrency trading is very risky and not suitable for the general public,” said the central bank's deputy managing director for financial crime, payments and policy, Loo Siew Yee.
"Therefore, DPT service providers must not represent DPT trading in a way that trivializes the high risks of DPT trading, nor engage in marketing activities directed at the general public."
Examples of digital payment tokens are cryptocurrencies like Bitcoin. A digital payment token service includes buying or selling, or providing a platform to enable people to exchange such tokens in Singapore.
The definition of such services will also be expanded to include the transfer of digital payment tokens and the provision of custodial wallet services for such tokens when the amendments to the Payment Services Act come into force, the central bank said in a statement. of press.
Digital payment token service providers include payment institutions, banks and other financial institutions, as well as applicants under the Payment Services Act.
At the moment, Singapore's regulations are primarily geared towards protection against money laundering and terrorist financing. Digital payment tokens are not subject to consumer protection measures.
