Singapore Urges Local Crypto Companies to Refrain From Promoting Digital Assets: Report
The city-state’s central bank – the Monetary Authority of Singapore (MAS) – reportedly issued guidelines that limit crypto trading service providers from promoting such assets. The financial institution believes dealing with digital assets is highly risky and unsuitable for every investor.
In addition, Australia’s top financial watchdog – the Australian Securities and Investments Commission (ASIC) – advised locals to restrain from investing retirement savings into bitcoin and the alternative coins.
Strict Rules for Advertising Crypto Services in Singapore
Singapore is known as one of the Asian cryptocurrency hubs as it has a comprehensive regulatory framework for dealing with such assets and a friendly ecosystem.
Those features have attracted a considerable chunk of the locals, who started delving into the industry in recent months. In fact, a survey revealed that 43% of them own digital assets, while 46% intend to enter the market this year.
Despite all of this, the Monetary Authority of Singapore urged local crypto firms not to advertise their services in public areas or by engaging third parties, such as social media influencers. They can only promote on their own corporate websites, official social media accounts, or mobile applications.
Loo Siew Yee – Assistant Managing Director at the MAS – asserted that the financial institution is not against the cryptocurrency industry. It even encourages the development of blockchain technology, she added.
However, trading bitcoin and altcoins could pose risks to inexperienced investors as the asset class is still highly volatile, Yee concluded:
“The trading of cryptocurrencies is highly risky and not suitable for the general public. DPT service providers should therefore not portray the trading of DPTs in a manner that trivializes the high risks of trading in DPTs, nor engage in marketing activities that target the general public.”
Australia Views Crypto as a ‘Speculative Investment’
In a separate announcement, the ASIC warned Aussies that cryptocurrency scams inside the country are on the rise. Moreover, the agency described bitcoin and the alternative coins as a “speculative investment” and advised people to consider the risks when contemplating investing their self-managed superannuation funds (SMSFs) into the asset class.
In case locals decide to allocate their retirement savings to cryptocurrencies, they should seek assistance from a licensed financial advisor, the agency recommended:
“Do not rely on social media ads or online contact from someone promoting an “investment opportunity.””
On the other hand, Jane Hume – Australia’s Finance Services Minister – is a proponent of the digital asset industry. Not long ago, she disagreed with the statement that people could lose a substantial amount of money if they enter the world of crypto.
In her view, the asset class is not just a temporary trend. It is a rapidly growing industry, which has “captured the hearts and minds” of Aussies, Hume said.
