Singapore To Restrict Highly Risky Crypto Investment Marketing
28 January 2022 - 2:00AM
NEWSBTC
Singapore, one of the world’s most progressive financial cities and
home to many crypto investment companies, is cracking down on
advertisements for digital asset services within its borders. The
Monetary Authority of Singapore, which to summarize: “This new law
will effectively ban advertisements related to digital
currencies.” It’s another setback for cryptocurrency
suppliers as more countries regulate this sector. The Financial
Authority of Singapore has issued guidelines to crypto investment
companies that urge them to cautionary advertising and marketing in
public areas and bodily or digital currency trading. The government
agency says these practices are dangerous for most people because
they can lead others into losing their funds when something goes
wrong with your investment strategy – which could happen at any
time. As authorities have already upset several companies with the
gradual approvals, these new rules might create an even more
competitive environment. Crypto suppliers should not use social
media platforms or other public sites to attract new customers.
They can’t advertise on buses, trains, and places where they stop
as well – nor through broadcast/print media, for that matter.
Offering ATMs with crypto tokens is also discouraged.
Cryptocurrency exchanges should not pay influencers to promote
their services. This is because Singaporean law requires all
advertising material to indicate 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 hazardous
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 Pause All Types of Marketing The Singaporean central
financial institution has taken an interesting approach by labeling
cryptocurrencies as ‘DPT’s” which stands for digital payment
tokens. 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 been hiring some top Hollywood talent. They’ve
rented out American actor Matt Damon for advertisements and even
splashed out on his services to make it seem more appealing. The
Hollywood star appeared on multiplex screens throughout Singapore,
promoting Crypto.com. The tagline “Fortune favors the
courageous” popped up earlier than motion pictures startup. Based
on the latest from MAS, advertisements for DPT games should no
longer be used in public venues. Crypto.com disclaimer reads: “The
Financial Authority of Singapore (MAS) requires us to supply this
danger warning to you as a buyer of a digital fee token (DPT)
service supplier. Please observe that you could be not be capable
to get well all the cash or DPTs you paid to Foris DAX Asia Pte Ltd
if Foris DAX Asia Pte Ltd enterprise fails.” Singapore’s Monetary
Regulator (MAS) has been vocal about its stance on digital
currency. The country’s laws specify that service providers who
fail to observe the rules face penalties. It’s more likely for them
when companies ignore public safeguards and continue working
legally within our borders. This could lead MAS to take action
against these businesses to prevent negative consequences. Time
will tell how this new advertising and marketing framework affects
businesses. Still, MAS instructed some DPT gamers to wind down old
campaigns or fulfill contractual obligations before penalizing
them. Crypto Investment Advertisement Framework Singapore’s Central
Financial Institution is taking an identical stance on crypto
investment advertising as Britain. The UK’s Advertising Standards
Authority has moved to clamp down against any misleading or
deceptive ads that may be running throughout this new digital
economy – and it looks like they’re going balls out when doing so.
With so many digital currency providers in need of licenses, it’s
no wonder that the government has been slow to respond. So far,
they’ve only granted five permits out of 180 purposes for these
“digital fee token provider” companies – and those are just since
January 2020 when Act took effect. The Singaporean Finance Agency
(SFA) recently released a statement highlighting their framework
for cryptocurrencies and blockchain technology, noting that it’s
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 many
thrilling alternatives for the trade and convey advantages to
shoppers. Opening the doorways to innovation additionally requires
a system of checks and balances to be put in place earlier than
shoppers achieve full consciousness and understanding of the brand
new instruments.” Featured image from Pixabay, chart from
TradingView.com
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