Singapore curbs crypto marketing in digital asset crackdown
January 17, 2022, 3:53AM EST
1 min read
Singapore has cracked down on crypto marketing in a bid to curb a frenzy of retail trading in risky digital assets.
In guidelines issued by the Monetary Authority of Singapore on Monday, the regulator said "the public should not be encouraged to engage in the trading of [digital payment tokens (DPT)]."
The body advised that service providers should only market their wares on their own websites, apps or social media, and in doing so should not trivialize the risks of investing in digital assets.
ATMs which deal in digital currencies will also be banned. "Such convenient access may mislead the public to trade in DPTs on impulse, without considering the risks of trading in DPTs," the announcement said.
A range of businesses including banks, payment providers and exchanges will be affected by the new guidelines.
The move marks the latest attempt to regulate the sector in Singapore, following the introduction of licences for crypto firms. Nikkei Asia reported in December that more than 100 companies out of around 170 that had applied for licenses had either been turned down or withdrawn their applications altogether.
In September, the regulator also ordered Binance to halt activities, leading to the exchange winding down its Singapore-only trading platform.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.