Singapore cbank issues guidelines to discourage crypto trading by public

Representations of the virtual currencies Ripple, Bitcoin, Etherum and Litecoin are seen on a PC motherboard in this illustration image, February 14, 2018. REUTERS/Dado Ruvic/Illustration//File photo

SINGAPORE, Jan 17 (Reuters) - The Monetary Authority of Singapore (MAS) on Monday issued guidelines limiting cryptocurrency trading service providers from promoting their services to the general public, as part of a bid to protect users. retail investors from possible risks.

Singapore is a popular location for crypto businesses due to a comparatively clear regulatory and operating environment and is among the pioneers globally in developing a formal licensing framework.

But authorities in the city-state have repeatedly warned that trading in digital payment tokens (DPT), or cryptocurrencies, is very risky and not suitable for the general public as it is subject to strong speculative swings.

The new guidelines clarify MAS's expectations that companies should not engage in the marketing or advertising of DPT services in public areas of Singapore or by engaging third parties, such as social media influencers, to promote DPT services. DPT to the general public.

They may only market or advertise on their own corporate websites, mobile apps, or official social media accounts.

MAS said it received about 180 applications for licenses to provide DPT services, of which five received approvals in principle. Sixty have withdrawn their applications and three have been rejected. MAS did not disclose the status of the other requests.

“MAS strongly encourages the development of blockchain technology and the innovative application of crypto tokens in value-added use cases,” Loo Siew Yee, deputy managing director of MAS (Financial Policy, Payments and Crime), said in a statement.

“But cryptocurrency trading is very risky and not suitable for the general public. Therefore, DPT service providers should not present DPT trading in a way that trivializes the high risks of DPT trading, nor engage in marketing activities directed at the general public. public."

Reporting by Chen Lin in Singapore Written by Aradhana Aravindan Edited by Ed Davies

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