Industry players respond to MAS guidelines on cryptocurrency advertising
Shielding retail investors from crypto risks
Singapore’s Monetary Authority (MAS) has introduced new guidelines restricting cryptocurrency firms from advertising to the general public. Public advertisements, including those via third parties like influencers or physical ATMs, are now prohibited. Instead, promotions must be limited to corporate websites, apps, and official social media accounts.
The move aligns with MAS’s view that cryptocurrency trading is “highly risky” and unsuitable for retail investors. However, industry voices suggest alternative approaches to protect consumers without dampening Singapore’s ambitions as a crypto hub.
Exploring balanced alternatives
Chia Hock Lai, co-chairman of the Blockchain Association Singapore, advocates for classifying cryptocurrencies as specified investment products. This classification would mandate investor assessments to ensure retail participants understand the risks. He believes this strikes a better balance than outright ad restrictions.
Ms Zann Kwan, CEO of Deodi, echoes this sentiment, suggesting measures like purchase limits and education campaigns. She noted that ATMs, which have now been removed, previously offered low-cost access to digital assets and a safer, physical interface for beginners.
Impact on crypto ATMs
Deodi and Daenerys & Co., Singapore’s largest crypto ATM operator, have ceased ATM operations in response to the new rules. While some firms had already planned to pivot away from retail services, the guidelines have accelerated their transitions.
Critics argue that the ban on ATMs removes an accessible entry point for small-scale investors, pushing them toward potentially riskier online platforms. “Physical machines provide reassurance and transparency,” Ms Kwan pointed out, contrasting them with dubious online links.
Global parallels and implications
Singapore’s crypto advertising restrictions mirror efforts in Britain and Spain, where regulators are cracking down on misleading promotions targeting uninformed retail consumers. These measures aim to address growing concerns about impulsive trading and scams.
While some worry that Singapore’s tougher stance could harm its image as a crypto hub, others see it as a necessary step toward sustainable growth. Professor Sumit Agarwal from the National University of Singapore noted that clear guardrails could enhance investor confidence and attract credible players to the ecosystem.
Navigating the path forward
With retail-focused firms scaling back or adjusting their strategies, MAS’s emphasis on consumer protection is reshaping Singapore’s cryptocurrency landscape. The challenge ahead lies in balancing safeguards with innovation, ensuring that Singapore remains an attractive destination for blockchain and digital asset enterprises while protecting its retail investors.
