Singapore has prohibited bitcoin service providers from promoting or advertising their products to the general public. This applies to businesses that provide such services, such as banks and payment institutions, and will be expanded to encompass cryptocurrency transfers and wallet services in the future.
The Monetary Authority of Singapore (MAS) issued new instructions on Monday, stating that service providers of Digital Payment Token (DPT), also known as cryptocurrency, should not promote their goods to Singaporeans. This practically means that these companies are unable to market or advertise their services in public places, such as on public transportation, websites, social media, broadcast and print media, or through the installation of real ATMs (automated teller machines). DPT services should not be promoted through promotional banners or pop-up adverts on social media platforms, for example. SMBs and customer trust will be prioritised in Singapore’s digital banking era.
According to a Forrester analyst, the introduction of digital banks will ‘shake up’ Singapore’s banking industry, which is likely to have up to five new digital market entrants, highlighting the need to establish consumer trust and better serve small businesses. The use of third parties, such as social media influencers, to market cryptocurrency services to the general public in Singapore is likewise prohibited.
According to MAS, DPT service providers are only allowed to market or advertise on their own business websites, mobile applications, or official social media profiles. The standards cover services such as purchasing and selling cryptocurrencies, as well as facilitating cryptocurrency exchanges. When the Payment Services Act is amended, this categorization will be expanded to encompass cryptocurrency transfers and the facilitation of DPT swaps where the service providers do not have money or DPTs. The Act’s changes were approved by parliament in January of this year.
MAS said that the Act controls DPTs for money laundering, terrorism funding, and “technological risk”. MAS would continue to examine the offering of DPT services to the public and may change its guidelines “as appropriate” because the bitcoin services sector was fast growing.
There are now multiple ATMs in Singapore where you may buy and sell cryptocurrencies, including Bitcoin. Daenerys & Co. and Bitcoin Exchange are two companies that run these computers. According to a poll published in August, 67 percent of Singaporean personal investors have increased their cryptocurrency holdings, with 78 percent disclosing they possess Ethereum. According to the study, which was done by cryptocurrency platform Gemini, financial platform Seedly, and cryptocurrency price-monitoring site CoinMarketCap, 69% had Bitcoin and 40% had Cardano.