Singapore, one of the world’s most modern financial capitals and home to several crypto investment firms, is cracking down on digital asset service ads within its boundaries.
According to the Monetary Authority of Singapore, “this new law will effectively restrict ads connected to digital currency.” It’s another setback for bitcoin providers as more governments regulate the industry.
The Financial Authority of Singapore has given instructions to crypto investment firms, advising them to be cautious while advertising and marketing in public places, as well as trading in physical or digital currencies. According to the government organization, these techniques are harmful to most people since they can cause others to lose money if something goes wrong with your investment approach – which can happen at any time.
As the government has already angered numerous enterprises with their incremental approvals, these new laws may create an even more competitive climate.
Cryptocurrency vendors should not use social media platforms or other public sites to attract new consumers. They are unable to advertise on buses, trains, and other areas where they stop, as well as through broadcast/print media. It is likewise discouraged to provide ATMs with crypto tokens.
Cryptocurrency exchanges should not pay influencers to promote their services. This is due to Singaporean law, which requires any advertising material to state who created it and what information they want people to know about the product/service.
Their marketing initiatives will continue to be carried out via the company’s own websites, social media profiles, and app stores.
“Cryptocurrencies are very risky and never acceptable for most people,” stated Yee Siew, MAS’s Assistant Managing Director of Coverage, Funds, and Monetary Crime, in a news release on Monday.
Singapore’s government has taken action to halt all forms of marketing
The Singaporean central bank has taken an unusual approach by referring to cryptocurrencies as “DPTs,” which stand for digital payment tokens. This new classification will assist them in keeping up with current trends in cryptocurrency trading and investing more wisely than previously.
Foris DAX Asia has been hiring top Hollywood stars in an effort to attract users to their crypto exchange. They’ve hired American actor Matt Damon for commercials and even paid for his services to make it appear more desirable.
The Hollywood actor promoted Crypto.com on multiplex screens in Singapore. Before the start of the motion picture industry, the tagline “Fortune Favors the Bold” appeared.
According to the most recent MAS guidelines, marketing for DPT games should no longer be used in public places.
The disclaimer on Crypto.com reads:
“As a buyer of a digital fee token (DPT) service provider, the Financial Authority of Singapore (MAS) compels us to provide you with this risk warning.” Please keep in mind that if Foris DAX Asia Pte Ltd fails, you may not be able to recover all of the money or DPTs you paid to Foris DAX Asia Pte Ltd.”
Singapore’s Monetary Authority (MAS) has been outspoken about its views on digital money. The country’s regulations provide that service providers who do not follow the guidelines would face sanctions. It is more likely for them to occur when firms disregard public safeguards and continue to operate legally within our borders. This could prompt MAS to take action against these companies in order to avoid undesirable outcomes.
It will be interesting to see how this new advertising and marketing strategy influences firms. MAS did, however, advise some DPT gamers to complete prior missions or contractual commitments before penalizing them.
Framework for Crypto Investment Advertising
Singapore’s Central Financial Institution is taking the same approach to crypto investment promotion as the United Kingdom. The UK’s Advertising Standards Authority has moved to crack down on any misleading or deceptive adverts that may be running in this new digital economy – and it appears that they’re going all out.
It’s no surprise that the government has been reluctant to respond, with so many digital currency suppliers in need of licenses. So far, they’ve only issued five licenses out of 180 for these “digital charge token supplier” companies – and that’s only since the Act went into effect in January 2020.
The Singaporean Finance Agency (SFA) recently issued a statement outlining their framework for cryptocurrencies and blockchain technology, emphasizing the importance of having safeguards in place when adopting new technologies.
The SFA’s president, Shadab Taiyabi, says:
“The blockchain technology has the ability to open up many exciting opportunities for the industry while also providing benefits to customers.” Opening the doors to innovation also necessitates the establishment of a system of checks and balances prior to customers gaining full awareness and knowledge of the new instruments.”
