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Singapore Guidelines Discourage Public Crypto Trading

Singapore is popular for crypto companies due to its clear regulatory environment but authorities have also tried to shield the public from trading in digital tokens, saying it is very risky


crypto tax
Crypto traders transfer money to exchanges through a few select banks or digital wallets. Photo: Reuters

 

The Monetary Authority of Singapore (MAS) issued guidelines on Monday that limit cryptocurrency trading service providers from promoting their services to the general public, as part of a bid to shield retail investors from potential risks.

Singapore is a popular location for cryptocurrency companies due to a comparatively clear regulatory and operating environment and is among the forerunners globally in developing a formal licensing framework.

But the city-state’s authorities have repeatedly warned that trading in digital payment tokens (DPT), or cryptocurrency, is highly risky and not suitable for the general public, as they are subject to sharp speculative swings.

The new guidelines clarify the expectations of MAS that companies should not engage in marketing or advertising of DPT services in public areas in Singapore or through the engagement of third parties, such as social media influencers, to promote DPT services to the general public.

 

Crypto Trading ‘Highly Risky’

They can only market or advertise on their own corporate websites, mobile applications or official social media accounts.

“MAS strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases,” Loo Siew Yee, MAS Assistant Managing Director (Policy, Payments and Financial Crime), said in a statement.

“But the trading of cryptocurrencies is highly risky and not suitable for the general public. DPT service providers should therefore not portray the trading of DPTs in a manner that trivialises the high risks of trading in DPTs, nor engage in marketing activities that target the general public.”

 

• Reuters with additional editing by Jim Pollard

 

ALSO SEE:

Four Things to Know After Two Months of Crypto Carnage

Ban Doesn’t Deter Singapore Crypto Investors: Straits Times

Singapore Gives First-Ever Formal Approval to Crypto Exchange: FT

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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