Singapore To Limit High Risk Crypto Investment Marketing
One of the world’s most progressive financial cities and home to many crypto investment companies, Singapore is tackling digital asset service advertising within its borders.
The Monetary Authority of Singapore, to summarize: “This new law will be effective ban ads related to digital currencies.” It is another setback for cryptocurrency suppliers as more countries regulate this sector.
Singapore’s financial authority has issued guidelines for crypto investment companies urging them to engage in cautionary advertising and marketing in public areas and physical or digital currency trading. The government agency says these practices are dangerous for most people because they can lead others to lose their money when something goes wrong with your investment strategy – which can happen at any time.
Since authorities have already upset several companies with the gradual approvals, these new rules could create an even more competitive environment.
Crypto vendors are not allowed to use social media platforms or other public sites to attract new customers. They also cannot advertise on buses, trains and places where they stop – not even through broadcast/print media. to offer ATMs with crypto tokens is also discouraged.
Bitcoin price remains stable after January 24, 2022 recovery | Source: Tradingview.com
Cryptocurrency exchanges are not allowed to pay influencers to promote their services. This is because Singapore law requires all advertising material to state who produced it and what they want people to know about the product/service.
Their marketing campaigns will continue through the company’s own websites, social media accounts or app stores.
“Cryptocurrencies are extremely dangerous and never appropriate for most people,” Yee Siew, Assistant Managing Director of Coverage, Funds & Monetary Crime at MAS, said in a press release on Monday.
Singapore Government Action To Suspend All Types Of Marketing
Singapore’s central financial institution has taken an interesting approach by labeling cryptocurrencies as ‘DPTs” which stands for digital payment coins. This new classification will help them keep up with the recent trends in cryptocurrency trading and invest more wisely than before.
In an effort to get people into their crypto exchange, Foris DAX Asia has hired some of the top Hollywood talents. They have hired American actor Matt Damon for advertisements and have even used his services to make it more attractive.
The Hollywood star appeared on multiplex screens all over Singapore promoting Crypto.com. The slogan “Fortune favors the brave” popped up before movie startups.
Based on the latest news from MAS, ads for DPT games are no longer allowed to be used in public locations.
crypto.com disclaimer reads:
“The Financial Authority of Singapore (MAS) requires that we provide this hazard warning to you as a purchaser of a digital fee token (DPT) service provider. Please note that you may not be able to recover any money or DPTs you have paid to Foris DAX Asia Pte Ltd if Foris DAX Asia Pte Ltd’s business fails.”
Singapore’s Monetary Regulator (MAS) has spoken out on its stance on digital currencies. The laws of the country state that service providers who do not comply with the rules risk sanctions. It is more likely for them when companies ignore public safeguards and continue to operate legally within our borders. This could prompt MAS to act against these companies to avoid negative consequences.
Time will tell how this new advertising and marketing framework affects businesses. Still, MAS instructed some DPT gamers to phase out old campaigns or fulfill contractual obligations before being penalized.
Advertising framework for crypto investments
Singapore’s central financial institution takes an identical stance on crypto investment advertising as Britain does. The UK’s Advertising Standards Authority has taken steps to clamp down on any misleading or deceptive advertisements displayed in this new digital economy – and it seems they are doing their best when they do.
With so many digital currency providers in need of licensing, it’s no wonder governments are slow to respond. So far, they’ve only granted five licenses out of 180 purposes for these ‘digital fee token provider’ companies – and those have only been since January 2020 when the law came into effect.
The Singaporean Finance Agency (SFA) recently released a statement highlighting their framework for cryptocurrencies and blockchain technology, noting that it is important to have guardrails in place when adopting new technologies.
Shadab Taiyabi, president of the SFA, says:
“The expertise behind blockchain has the potential to open up many exciting alternatives to commerce and convey benefits to shoppers. In addition, opening the doors to innovation requires that a system of checks and balances be put in place before shoppers gain full awareness and understanding of the brand new tools.”
Featured image from Pixabay, chart from TradingView.com