How s’pore crypto companies react to new MAS advertising guidelines – Wired PR Lifestyle Story

Although Singapore is free to invest in cryptocurrencies, the Singapore Monetary Authority (MAS) has often refused to use it as an investment tool. In line with this attitude, MAS has recently issued guidelines Avoid advertising with cryptocurrency service providers to the general public.

These companies may not advertise in public areas or engage third parties, such as social media operators, to promote cryptographic services in Singapore. Instead, they can only market or advertise on their corporate websites, mobile apps, or official social media accounts.

It is unclear whether these guidelines have legal implications for those who violate these guidelines, but it has since become necessary for cryptocurrency exchanges to adapt their marketing strategies.

In particular, the new guidelines have forced the closure of ATMs here. Singapore was the first country in Asia to join, almost eight years ago. Major operators Daenerys & Co and Deodi caught the news by surprise and told him Reuters that it was unexpected.

How do cryptographic exchanges feel about this new guideline?

Exchanges like Crypto.com and Coinbase have both invested heavily in physical advertising in Singapore. The former is also a sponsor of Formula 1, and will return to the city in October.

In an interview with the Vulcan Post, some cryptographic exchanges stated that these guidelines should take shape.

The latest regulations are not surprising, as the interest in cryptocurrencies has grown rapidly over the last year, both at the institutional and retail levels. In fact, we anticipate that in the coming months there will be further improvements in the regulatory framework governing the cryptography industry.

– Yusho Liu Coinha CEO

Coinha is one of only five companies in Singapore to be licensed to provide digital payment token (DPT) services. Therefore, Liu added, “Coinhako remains fully prepared and is committed to working closely with its regulators and complying with its regulatory obligations.”

More than 170 companies applied for a DPT license last year, and many of them remain exempt while reviewing their applications.

In response to the DPT license requirements, Huobi Global has discontinued its services to Singapore users. The company announced that it would have to enter Singapore as a limited jurisdiction to comply with the law.

Since then, Huobi has been established as a separate entity in Singapore to provide DPT services in the country.

“Huobi Singapore is already complying with the MAS guidelines for providing DPT services to the public,” says CEO Edward Chen. “Currently, we only allow corporate users to register an account, by invitation only. We also do not engage in high-level marketing activities.”

Are these guidelines necessary?

The reason for the MAS guidelines is to avoid thoughtless trading. Authorities have often been in favor of blockchain technology, but its potential must be measured by the risk to people’s financial security.

Because cryptography can be a high-risk investment, it is not suitable for everyone. Investors should at least do their due diligence and understand the playing field.

By preventing crypto exchanges from announcing their services, MAS is widening the entry barrier. People will no longer be persuaded to invest in Bitcoin because they saw a sign on MRT. They will have to do their own research and, in turn, help them make intelligent decisions.

This is a commitment that protects the general public without restricting the basic operations of crypto companies.

Should alternative measures be considered?

While MAS has taken into account the interests of blockchain companies and the general public, perhaps the commitment goes against the former.

The removal of cryptographic exchanges from the public eye directly affects the ability to attract customers, and at the same time, their essence. This is also a step towards incorporating blockchain technology into everyday life.

If MAS wants to drive blockchain-based innovations in Singapore, it is not advisable to blind companies (e.g., cryptocurrency ATM operators) with restrictive guidelines.

“It would be better to consult the industry,” said Chia Hock Lai, president of the Blockchain Association Singapore, Channel News Asian.

By doing so, companies may be expected to set higher standards of consumer protection. For example, Huobi Singapore already has measures in place to make consumers aware of the risks.

Therefore, we make sure that users are aware of the risks involved. This involves issuing risk warnings to users when they sign up for a Huobi Singapore account. These warnings indicate the potential risks involved in trading DPTs (e.g., volatility) and advise customers not to transact with DPT if they are unfamiliar with the token or technology.

– Edward Chen, General Manager of Huobi Singapore

Promising these warnings could have been a more beneficial commitment than banning the DPT services advertisement. That way, the general public would still have an entry point for blockchain technology. They will be able to discover and discover new innovations, even if they are aware of the dangers of investing in them.

Is Singapore still a crypto site?

In my opinion, MAS’s approach helps to strengthen the situation as a crypto site in Singapore. Last year, we saw countries like China, India, Russia imposing or examining general bans. On the other hand, the Singapore regulations show a nuanced understanding of the playing field.

Not everyone will see the DPT ad ban as a fair compromise, however, there are many countries around the world that do not want any compromise.

With that in mind, Singapore remains the perfect place for blockchain companies to set up shop. They can do this knowing that their interests are being taken into account in politics.

“As a financial hub with a long history of progressive policies, Singapore has always shown a strong commitment to technological innovation. This is well-positioned to be a regional cryptocurrency hub,” says Chen.

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