Guidelines banning crypto promotions can be fine-tuned and supported by consumer education

SINGAPORE'S new guidelines prohibiting public marketing of crypto trading could result in the industry exercising more caution towards retail investors in the short term - while the much-coveted licences for digital payment token service providers hang in the balance - but they may need some fine-tuning if they are to be effective in the long run.

The Monetary Authority of Singapore (MAS) on Monday (Jan 17) launched guidelines preventing crypto firms from promoting their services in public areas and through third-party engagements, such as social-media influencers.

Singapore's financial regulator has always maintained that crypto trading is a highly risky business unsuitable for the man on the street, while at the same time making known its ambitions to be a global crypto hub. The guidelines come after it has observed companies "actively promoting" their services through online and physical advertisements or via ATMs in public areas, MAS said.