The Monetary Authority of Singapore (MAS) has issued guidelines which highlighted that Digital Payment Token (DPT) service providers should not promote their services to the general public in Singapore.
The services include the buying, selling or facilitating the exchange of DPTs.
MAS has consistently warned that trading DPTs is highly risky and not suitable for the general public, as the prices of DPTs are subject to sharp speculative swings.
The announcement comes on the heels of MAS’ observation that some DPT service providers have been actively promoting their services through online and physical advertisements or through the provision of physical automated teller machines (ATM) in public areas.
The regulator felt that this could encourage consumers to trade DPTs on impulse, without fully understanding the attendant risks.
The new guidelines are set to clarify MAS’ expectations that DPT service providers should not engage in marketing or advertising their services in public areas in Singapore such as through advertisements on public transport, public transport venues, public websites, social media platforms, broadcast and print media, or provision of physical ATMs.
DPT service providers are also not allowed to promote their services through the engagement of third parties, such as social media influencers.
They are only allowed to market or advertise on their own corporate websites, mobile applications or official social media accounts.
Additionally, the definition of DPT services will be expanded to include the transfer of DPTs, provision of custodian wallet services for DPTs, and facilitating the exchange of DPTs without possession of moneys or DPTs by the service providers, when the amendments to the PS Act take effect.
Loo Siew Yee, Assistant Managing Director (Policy, Payments and Financial Crime at MAS said,
“MAS strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases. 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.”