| Asia | Articles
The Singapore regulator’s recent announcement on cryptocurrency prohibits a range of marketing including billboard and social media advertising. But provided the general public is protected, some marketing is still possible and the country remains a popular choice for those looking to set up a regional hub.
On 17th January, the Monetary Authority of Singapore issued guidelines setting out its expectation that digital payment token – or DPT – service providers should not conduct certain marketing activities or promotional campaigns. The guidelines: Guidelines on Provision of Digital Payment Token Services to the Public are also applicable to payment services licence applicants.
The MAS views the trading of DPTs (including cryptocurrencies) as a high-risk activity and does not want DPT services promoted in a way that underplays these risks to the general public.
The guidelines set out specific types of promotion that are now prohibited:
- Placing advertisements and promotional materials in Singapore public transport, public transport venues, broadcast media or periodical publications (such as newspaper and magazine), third party websites, social media platforms, public events or roadshows
- Engaging with third parties (for example, social media influencers or third-party websites) to promote DPT services to general public
- Provision of automated teller machines in public areas
The guidelines also cover the promotion of payment token derivatives in which DPTs are the underlying assets (such as contracts-for-differences and futures contracts). This means that DPT service providers should not conduct any marketing activity to the public that will mislead that PTDs are less risky than DPTs.
As the cryptocurrency sector is still expanding and Singapore continues its initiative to be the Asia-Pacific centre for cryptocurrency activity, it remains a popular choice for DPT service providers to set up their Asian office in Singapore. Reassuringly, whilst marketing and promotions to the general public are prohibited, campaigns on a DPT service provider’s own corporate website, mobile applications, or official social media accounts are still allowed.
We can help
The guidelines will inevitably lead to changes to the marketing plans of DPT service providers in Singapore.
We can help you prepare the application package for Payment Services licences in relation to DPT services including advising on your marketing plan to ensure it complies with the MAS requirements. We can also answer questions from the MAS during the application process. If you are already licensed we can help you understand the impact of the latest guidelines and work with you to develop a compliant marketing strategy.
