Today the Monetary Authority of Singapore published guidelines on how cryptocurrencies can be promoted to the public. Essentially, all cryptocurrency providers may only promote crypto on their own websites and social media channels. They aren’taren’t allowed to target the public through online or offline advertisements, nor should they partner with social media influencers. Physical cryptocurrency ATMs are also a no-no.
“MAS strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases,” said Ms Loo Siew Yee, MAS assistant MD. “But the trading of cryptocurrencies is highly risky and not suitable for the general public. DPT (crypto) 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.”
Historically, Singapore has been seen as one of the most crypto friendly jurisdictions. Clearly its aim is to enable the technology while protecting investors. Singapore’s largest bank, DBS Bank, was one of the first regulated banks in the world to offer cryptocurrency services. However, the service is only available to accredited investors and institutions.
Cryptocurrency advertising has started to attract regulator attention. The Advertising Standards Authority banned seven crypto ads in December 2021 and one in January in the UK. Several of the ads are from some of the highest profile cryptocurrency exchanges, including Coinbase, Crypto.com, Kraken and eToro. In most cases, they were banned because the advertisements “irresponsibly taking advantage of consumers’ inexperience and for failing to illustrate the risk of the investment.”