The Monetary Authority of Singapore (MAS) wants to stop crypto-related businesses from advertising to the public. For this reason, the regulator had released new guidelines to prevent retail speculation for volatile assets.
Guidelines that MAS has set
As per the guidelines, the MAS has declared that crypto-related businesses will not use physical ATMs, physical advertisements, and online platforms in public spaces. These entities should instead advertise on their social media accounts, mobile applications, and websites. MAS has not stated what the consequences of non-compliance will be.
However, MAS has stated that it still stands behind the innovation part of blockchain technology. These guidelines affect crypto exchanges, affect payment service providers and banks.
According to Lol Siew Yee, the Assistant Managing Director at MAS, the regulator supports blockchain technology development and crypto token application in value-adding use cases. However, crypto trading is not appropriate for the public as it is perilous.
Yes adds that providers of DPT services should avoid portraying Digital Payment Tokens (DPT) trading in a way that minimizes the risk. Moreover, they should stop targeting the public through their advertising.
This incident is not the first where MAS has shown skepticism for crypto trading. The body has regularly warned against trading while still supporting innovation in the industry.
For example, MAS Managing Director, Ravi Menon, expressed doubts about cryptocurrency functioning as money. Menon also pointed that digital currency had failed in many ways in its role as a store of value.
Businesses have applied for DPT licenses
MAS has revealed that it received about 180 applications for businesses seeking a license to offer DPT services. They have given four of these businesses in-principle approval and rejected three. Furthermore, sixty have withdrawn their applications.
The companies that have received licenses include DBS Vickers, Independent Reserve, Triple A, and Fomo Pay.
MAS’ strict regulations have made many crypto-related businesses, such as Binance, reluctant to venture into the country. As a result, it withdrew its application for a crypto permit in December 2021. The firm also plans to cease its operation in Singapore on Feb 13, 2022.
Until now, Singapore has remained a popular location for crypto firms as it offers clear regulations.