Singapore watchdog cracks down on crypto marketing to public
The Monetary Authority of Singapore (MAS) is clamping down on marketing crypto investments to the public as part of a wider move by the city-state to prevent harm to unprofessional consumers.
Singapore’s watchdog published a set of guidelines instructing so-called ‘digital payment token (DPT)’ companies to stop advertising their products in public spaces. The ban applies to both physical and virtual adverts, particularly online and on social media platforms, as the MAS described the trading of crypto assets “highly risky and not suitable for the general public.”
“DPTa should not portray the trading of DPTs cryptocurrencies in a manner that trivializes the high risks of trading in DPTs, and should not promote their DPT services in public areas in Singapore or through any other media directed at the general public in Singapore,” the MAS said.
Crypto companies have also been told not to solicit customers through ads on social media platforms or other public websites. The non-binding guidelines also prohibit publishing ads on public transport, or through broadcast and print media. They are also discouraged from engaging third parties, such as social media influencers, or providing physical ATMs in Singapore for dispensing crypto tokens.
Instead, crypto firms can only market their offering on their own corporate websites, mobile applications or official social media accounts.
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Singapore received 180 crypto applications
Mas has identified crypto as a priority within financial advertising and companies may be issued with warnings or required to include disclaimers on their advertisements.
Interestingly, Crypto.com has been promoting its exchange and wallet services in movie theaters in Singapore. The platform has partnered with Matt Damon to formally introduce the platform to consumers around the world. The Hollywood movie star was the hero of a global brand and advertisement campaign – entitled “Fortune Favours the Brave” – that aired in over 20 countries.
The Monetary Authority of Singapore has updated its regulatory framework for crypto-related activities, including digital payments. The country’s Payment Services Act (PSA) covers all crypto businesses and exchanges based in Singapore, bringing crypto players under anti-money laundering and counterterrorist-financing rules.
Singaporean regulators have received 180 licence applications from digital asset providers as the country was seen to be crypto-friendly and has been attracting global firms to set up offices here. This included top crypto exchanges such as Binance and Kraken. Although the MAS has recently given its in-principle approval to several applicants, but over 30 applications were withdrawn after engagement with the agency and two have been rejected.
