MAS provides new guidelines for cryptocurrency advertising in S’pore – Wired PR Lifestyle Story

The Singapore Monetary Authority (MAS) reported yesterday (January 17). Digital Payment Token Guidelines (DPTs), commonly known as cryptocurrencies, cannot be used by service providers to promote their services to the general public in Singapore.

They should “not” engage in the marketing or advertising of DPT services:

• In public places in Singapore, such as public transport, public transport sites, public websites, social media platforms, media and print media, or the supply of physical ATMs; or
• through the commitment of third parties, such as social media actors, to promote DPT services to the general public in Singapore.

DPT service providers may only market or advertise on their corporate websites, mobile applications, or official social media accounts.

DPT services include buying or selling DPTs or facilitating the exchange of DPTs.

According to the MAS, the definition of “DPT services” will be expanded to include the transfer of DPTs, the provision of DPT-to-wallet services, and the facilitation of the exchange of DPTs without any cash or DPT service providers in the event of changes. The Payment Services Act (PS Act) will come into force.

DPT service providers include payment institutions, banks, and other financial institutions, as well as applicants under the Act.

Ads like this can encourage consumers to trade with impulse

MAS has found that some DPT service providers are actively promoting their services through online physical ads or through automated ATMs on public sites. This can push consumers to push DPTs to a bargain without fully understanding the risks involved.

He has repeatedly warned that DPT trading is dangerous and unsuitable for the general public because the price of DPT is subject to drastic changes in speculation.

MAS strongly encourages the development of blockchain technology and the use of innovative applications for cryptographic tokens to add value in use cases. But cryptocurrency trading is very risky and not suitable for the general public.

DPT service providers should therefore not represent DPT trading in a way that minimizes the high risk of DPT trading, nor should they engage in marketing activities aimed at the general public.

– Loo Siew Yee, Assistant Managing Director of MAS (Political, Payments and Financial Crimes)

For now, the phrase “shouldn’t” in the new MAS guidelines is very vague and does not firmly state whether it is an offense for providers to act otherwise. If so, what would be the legal consequences?

In any case, I believe that MAS Covid-19 is taking the same position as the whole situation. At the summit, Minister Lawrence Wong, head of the Covid-19 Multi-Ministry Taskforce, encouraged Singaporeans not to visit other homes.

He did not say clearly that it was a crime to do so, but he said that the people of Singapore would understand that it was appropriate to do so and that he hoped not to take action.

After all, this is pure instruction and not judgment. Therefore, it is very likely that DPT will only encourage service providers not to advertise or market their services, and it will not be illegal if they do so.

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Featured Image Credit: Edgar Su via Reuters