Singapore issues guidelines to prevent DPT services to general public

Representations of the Litecoin, Bitcoins, Etherum, and Ripple virtual currency are seen on a PC motherboard in this illustration picture, February 14, 2018. REUTERS Dado Ruvic Illustration File Photo

SINGAPORE, Jan 17, Reuters - The Monetary Authority of Singapore MAS has issued guidelines that prohibits service providers from promoting their services to the general public, as part of a bid to protect retail investors from potential risks.

Singapore is a popular location for cryptocurrencies companies due to its clear regulatory and operating environment and is one of the pioneers in developing a formal licensing framework.

The city-state's authorities have warned that trading in digital payment tokens DPT orCryptocurrencies is highly risky and not suitable for the general public, as they are subject to speculative swings.

The new guidelines clarify the expectations of MAS that companies should not engage in marketing or advertising of DPT services in public areas in Singapore or through the engagement of third parties, such as social media influencers, to promote DPT services to the general public.

They can only advertise or market on their own corporate websites, mobile applications or official social media accounts.

The MAS said about 180 applications have been received for licences to provide DPT services, of which five have been awarded in-principle approvals. Sixty have withdrawn their applications and three have been rejected. The status of the other applications was not disclosed by MAS.

Loo Siew Yee, MAS Assistant Managing Director Policy, Payments and Financial Crime, said MAS strongly encourages the development of a technology that adds value to value-adding use cases.

The trading of cryptocurrencies is highly risky and not suitable for the general public. DPT service providers should not portray the trading of DPTs in a manner that trivialises the high risks of trading in DPTs, nor engage in marketing activities that target the general public.