Singapore Regulator Cracks Down On The Marketing Of Digital Assets

Singapore has issued new guidelines on digital payment token (DPT) services to its citizens, which seem more of a crack down on crypto marketing in a bid to slow down a frenzy of retail trading in digital assets. 

In guidelines issued by the Monetary Authority of Singapore (MAS) on Monday, the regulator warned:

“The public should not be encouraged to engage in the trading of DPTs.

Under the Payment Services Act (“PS Act”), entities which provide services relating to DPTs are regulated primarily for money laundering and terrorism financing risk, as well as technology risk.”

Singapore is one of the Asian cryptocurrency hubs as it has a comprehensive regulatory framework for dealing with such assets and a friendly ecosystem.

Those features have attracted a considerable amount of the locals, who have entered the industry in recent months. According to survey revealed that 67% of Singaporeans own digital assets, and 1/3 of the ones who don’t own crypto yet, plans to buy some.

Regardless, according to the new MAS guidelines, the service providers should only market their wares on their own websites, apps or social media, and in doing so should not trivialize the risks of investing in digital assets. 

ATMs which deal in digital currencies will also be banned. The announcement detailed:

“Such convenient access may mislead the public to trade in DPTs on impulse, without considering the risks of trading in DPTs.”

The new guidelines will affect a range of businesses including banks, payment providers and exchanges.

The move marks the latest attempt to regulate the sector in Singapore, following the introduction of licences for crypto firms. 

According to a report by Nikkei Asia in December, over 100 companies out of around 170 that had applied for licenses had either been turned down or withdrawn their applications altogether. 

In September, the regulator also ordered Binance to stop operations in Singapore.