The new circular is applicable to crypto-asset service providers when carrying out these advertising activities.
Previously, Singapore warned cryptocurrency and digital token providers not to promote or advertise their digital tokens through various media platforms to the general public.
In new guidelines, the Monetary Authority of Singapore (MAS) has stated that providers of digital payment tokens (DPT or more commonly known as cryptocurrency) services should not promote their DPT services to the general public in Singapore.
The new guidelines also apply to banks and payment institutions that offer such services. These will be further extended to include the transfer of cryptocurrencies and the provision of wallet services.
“Cryptocurrency trading is highly risky and not suitable for the general public. DPT service providers should therefore not portray DPT trading in a way that trivializes the high risks of DPT trading, nor engage in marketing activities that target the general public,” said Loo Siew Yee, Deputy Managing Director of MAS (Policy, Payments and Financial Crime).
The authority warned that trading in cryptocurrencies is “highly risky” and not suitable for the general public, as crypto prices are subject to strong speculative swings.
In November last year, the Indian government raised concerns about crypto advertisements promising wild returns.