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Singapore's central bank has published guidelines aimed at discouraging cryptocurrency trade by the general public. The central bank stressed that "cryptocurrencies trade is highly risky and unsuitable for the general public."
The Central Bank of Singapore discourages cryptotrade by the general public.
The Singapore Monetary Authority (MAS), the country's central bank, announced on Monday that it has issued guidelines "to discourage cryptocurrency trade by [the] general public."
The guidelines prevent cryptocurrency service providers from promoting their digital payment token (DTT) services to the general public. Dpt is commonly known as crypto-currency, the mas clarified.
The central bank explained that companies should not market or advertise crypto services in public areas of singapore or use third parties, like social media influencers, promote cryptocurrency services to the public at large.
Companies can only commercialize or advertise crypto services on their own websites, mobile applications or official social media accounts.
Wet siew yee, the deputy director general of mas for policy, payments, and finance crime, noted that the central bank "strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-added use cases." However, she pointed out:
But the trade of cryptocurrencies is highly risky and not suitable for the general public. Direct television service providers should therefore not portray direct television exchanges in a way that trivializes the high risks associated with direct television exchanges, or engage in marketing activities directed at the general public.
The mas has emphasized that the suppliers of crypto services "should conduct themselves with the understanding that the trade of dpts is not suitable for the general public."
The Singaporean central bank has repeatedly warned that cryptocurrency trading is “highly risky and not suitable for the general public” given how the prices of these coins are subject to sharp speculative swings.
About 170 companies have applied to provide crypto services in Singapore. However, more than 100 of them have either been rejected or withdrawn.
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