Companies interested in promoting / marketing cryptocurrencies in Singapore will not be able to do so in public spaces or in media aimed at residents, leaving available only websites, apps and official accounts on social networks. Influencers or third parties may not be used to promote products or services.
La Monetary Authority of Singapore (MAS) the main regulator for local financial services, today issued a warning to companies in the cryptocurrency sector to limit advertisements aimed at the public residing in the country.
Limitations and prohibitions on crypto advertisements in Singapur
This was indicated by the MAS in a digital digital technologies are these electronic tools that have the ability to generate, store or even process data. document published today, which warns companies in the crypto sector to properly inform about the characteristics and risks associated with the marketing of this type of assets, which reads:
“The public should not be encouraged to engage in DPT (digital payment token) trading… [Firms] should not represent DPT cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. trading in a way that trivialises the high risks of trading operations… and should not promote their DPT services in public areas in Singapore, or through any other means directed at the general public locally.”
Given such restrictions, this only leaves as valid space for advertising certain spaces on the web, as well as in certain apps and / or official accounts on social networks, significantly limiting the scope they could have to bring products and services to residents of the Asian country.
Another interesting aspect is that the measure also prevents companies from resorting to collaborations with influencers, entities and/or third parties to promote their products or services, an increasingly common practice within the sector.
New attack against the crypto space
While the measure could generate impact and be interpreted as an attack against cryptocurrencies by the local government, the truth is that the MAS has already spoken out on previous occasions against certain companies in the sector, highlighting in particular the case and what happened with the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Binance.
In August 2021, the MAS pointed to Binance and other companies trading cryptocurrencies of not having the respective license to carry out such activities at the local level.
This prompted the aforementioned entities to apply for the respective licenses, especially because Singapore is seen as an important market in Asian territory, in addition to the fact that the country also figures as one of the main technological exponents in the region, thus having a strategic value in terms of crypto adoption.
Advertising is the problem
However, it seems that cryptocurrency hype is starting to become a problem in Singapore as well as in many other countries.
In this regard, the conflicts that have arisen in several companies and projects in the United Kingdom are particularly noteworthy, where the Advertising Standards Authority (ASA) and the Financial Conduct Authority (FCA) made in recent months to moderate the advertisements made by certain entities, pointing out that they do not share objective information and have incurred in misleading messages to motivate residents to invest investing is when you put money in a financial scheme with the intent of making a gain. in cryptocurrencies.
On the other hand, the National Securities Market an area or arena, online or offline, in which commercial dealings are conducted. Commission (CNMV), the government agency in charge of regulating the securities markets in Spain, issued a circular this Monday defining the new rules for crypto advertising, which poses new restrictions on this matter for companies and interested entities.
- Spain establishes new rules for cryptocurrency advertising
- Binance Partners with Billionaire in Thailand to Establish Local Crypto-Exchange
- Crypto.com pauses withdrawals after reports of “unauthorized activity” on user accounts
Version by Angel Di Matteo / DiarioBitcoin
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