In an effort to stop the general public from engaging with crypto trading, the Monetary Authority of Singapore (MAS), which is the country’s central bank, has issued certain guidelines by which MAS has been discouraging locals from crypto trading on the basis that crypto trading is highly risky and not suitable for the people in Singapore.
An announcement has been made by MAS on 17th January 2022 containing new guidelines regarding cryptocurrencies. In the announcement, MAS warned people in Singapore to refrain from cryptocurrencies as they pose grave risks.
MAS’s crypto guidelines are simultaneously made applicable to the local and foreign crypto service providers in Singapore. For instance, crypto service providers have been asked to refrain from promoting or marketing digital payment tokens i.e. cryptocurrencies or digital currencies. MAS further clarified that under the guidelines crypto service providers cannot advertise nor post any adverts on corporate websites. Furthermore, crypto adverts have been stopped from being advertised at public places, government-owned premises as well as local transport vehicles.
Similarly, social media networks and websites too have been asked not to promote crypto ads, especially for the Singapore region. However, no restriction has been imposed upon crypto service providers to advertise crypto ads at the websites which are owned and controlled by them. They can also advertise their crypto adverts on social media from their official accounts only. No third-party advertisers will however be allowed to post crypto ads, warned MAS specifically.
Loo Siew Yee, who is the Asst. MD of MAS stated that the bank duly acknowledges and encourages technologies of innovation such as blockchain. In addition, the bank further encourages the development of apps built exclusively for digital currencies. Yet one cannot deny that crypto trading is highly risky, poses grave monetary losses, and is therefore not suitable for people in Singapore. She advised crypto service providers that they should not advertise in a manner that does not make full disclosure of the associated risks. She further suggested that only those people should be encouraged to engage in crypto trading who have extra money. The general public, especially the middle class and daily wagers, should not be encouraged to do crypto trading.
MAS further expects service providers to act more responsibly and self-determine whether crypto trading is good for an interested person or not. In this manner, crypto service providers will be able to minimize the monetary risks that could be caused to the general public.
Singapore has been a hub for digital currency and blockchain as well as for innovation. At least 30% of the youth population in Singapore is engaged with cryptocurrencies with small, medium, and large stakes. Most traded cryptocurrencies in Singapore are Bitcoin, Ethereum, Dogecoin, XRP, Bitcoin Cash, Litecoin, Ethereum Classic etc.
