Singapore’s central bank has issued guidelines to discourage cryptocurrency trading by the general public. The central bank emphasized that “the trading of cryptocurrencies is highly risky and not suitable for the general public.”
Singapore’s Central Bank Discouraging Crypto Trading by the General Public
The Monetary Authority of Singapore (MAS), the nation’s central bank, announced Monday that it has issued guidelines “to discourage cryptocurrency trading by [the] general public.”
This policy prohibits cryptocurrency traders from marketing their DPT services to the public. The MAS clarified that DPT is also known as cryptocurrency.
The central bank stated that crypto services should not be promoted or advertised in Singapore by companies or third parties such as influencers on social media.
Only corporate websites or mobile apps can be used by companies to market and advertise crypto services. Official social media accounts are not allowed.
Loo Siew Yee, the MAS’ assistant managing director for policy, payments, and financial crime, noted that the central bank “strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases.” However, she stressed:
Trading cryptocurrencies can be dangerous and is not recommended for everyone. DPT service providers shouldn’t portray trading in DPTs as trivializing the risks, or engage in targeted marketing that targets the general public.
The MAS emphasized that crypto service providers “should conduct themselves with the understanding that trading of DPTs is not suitable for the general public.”
The Singaporean central bank has repeatedly warned that cryptocurrency trading is “highly risky and not suitable for the general public” given how the prices of these coins are subject to sharp speculative swings.
Nearly 170 firms applied for the provision of crypto services to Singapore. Most of these companies have been rejected or withdrew their applications.
What do you think about Singapore’s central bank restricting cryptocurrency ads to discourage the public from investing in cryptocurrency? Comment below.
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