Sections

ideals
Business Essentials for Professionals



Singapore Authorities Issue Guidelines To Shield The General Public From Threats Of Crypto Trading


17/01/2022


Singapore Authorities Issue Guidelines To Shield The General Public From Threats Of Crypto Trading
Authorities in Singapore want to shield the general public from making hasty investments in crypto-assets and losing money and the Monetary Authority of Singapore (MAS) has come out with guidelines for the companies providing cryptocurrency trading services, limiting what services they can offer to the common man.
 
For cryptocurrency companies, Singapore is the desired location because the city-state has a regulatory and operating environment that is comparatively clear, and the city-state is considered to be amongst the leaders globally in developing a formal licensing framework to regulate cryptocurrency and other crypto assets.
 
However repeated warnings have been issued by authorities of the city-state that trading in digital payment tokens (DPT), or cryptocurrency, is very risky and is unsuitable for the common man since cryptocurrencies go through high volatility periods and speculative trading. 
 
Firms should not market or advertise DPT services in public spaces in Singapore, nor should they employ third parties, such as social media influencers, for the promotion of DPT services targeted at the general public, according to the new instructions from MAS.
 
They are limited to marketing and advertising on their own business websites, mobile applications, and official social media profiles.
 
According to MAS, it has received approximately 180 applications for DPT licenses, with five receiving in-principle approvals. Sixty applications have been withdrawn, and three have been denied. The status of the other applications was not disclosed by MAS.
 
"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 trivializes the high risks of trading in DPTs, nor engage in marketing activities that target the general public."
 
(Source:www.ndtv.com)