The city-state’s central bank – the Monetary Authority of Singapore (MAS) – has reportedly issued guidelines that limit crypto trading service providers from promoting such assets. The financial institution believes that dealing with digital assets is highly risky and unsuitable for every investor.
In addition, Australia’s top financial watchdog – the Australian Securities and Investments Commission (ASIC) – advised locals to stop investing their retirement savings in bitcoin and alternative coins.
Strict rules for advertising crypto services in Singapore
Singapore is known as one of the Asian crypto hubs as it has a comprehensive regulatory framework to deal with such assets and a friendly ecosystem.
Those specialties have attracted a large section of locals, who have begun to delve into the industry in recent months. In fact, a survey showed that 43% of them own digital assets, while 46% intend to enter the market this year.
Despite all this, the Monetary Authority of Singapore urged local crypto firms not to advertise their services in the public domain or by involving third parties such as social media influencers. They may promote only on their corporate websites, official social media accounts or mobile applications.
MAS Assistant Managing Director Lu Siew Yi stressed that the financial institution is not against the cryptocurrency industry. He added that it also encourages the development of blockchain technology.
However, trading bitcoin and altcoins can pose risks for inexperienced investors as the asset class remains highly volatile, Yi concluded:
“Trading of cryptocurrencies is highly risky and not suitable for the general public. Therefore, DPT service providers should not portray the trading of DPTs in a manner that undermines the importance of the high risk of trading in DPTs, nor to the general public. Engage in targeting marketing activities.
Australia sees crypto as a ‘speculative investment’
In a separate announcement, ASIC warned the Australian team that cryptocurrency scams are on the rise inside the country. In addition, the agency described bitcoin and alternative coins as “speculative investments” and advised people to consider the risks when considering investing their self-managed retirement funds (SMSFs) in the asset class.
If locals decide to allocate their retirement savings to cryptocurrencies, they should seek help from a licensed financial advisor, the agency recommends:
Don’t rely on online exposure to “social media ads” or someone promoting an “investment opportunity.”
On the other hand, Jan Hume – Australia’s Minister of Finance Services – is a proponent of the digital asset industry. Some time ago, she disagreed with the statement that people could lose significant amounts of money if they entered the world of crypto.
In his view, the asset class is not just a temporary trend. Hume said it is a fast-growing industry that has “captured the hearts and minds” of the Australian team.
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