Singapore Hits Crypto Exchanges with Crackdown on Digital Asset Advertising

There has been plenty of regulatory activity in recent months. Earlier in the month, news hit the wires of the UK’s Advertising Standards Authority (ASA) banning two Crypto.com (CRO) adverts.

With regulatory chatter on the rise, the move came following the Bank of England’s call for a global crypto regulatory framework late last year. Aligned with the Bank of England’s concerns, the IMF also called for a global framework, citing interconnectedness with the U.S equity markets as a key risk.

Since then, we have also reported India’s central bank, the RBI, investigating crypto exchanges for possible tax evasion. Binance-owned (BNB) WazirX was one of the exchanges that the RBI reportedly searched.

Just last year, news had hit the wires of Binance withdrawing its application for reportedly failing to meet Monetary Authority of Singapore (MAS) KYC and AML requirements.

Amidst all the regulatory activity, Binance has been reportedly beefing up its compliance division to help navigate a currently fragmented global regulatory landscape.

China Sends Mixed Crypto Messages

Since the government’s ban on Bitcoin mining, the Chinese government has been sending mixed signals to the crypto market.

Just today, news hit the wires of Wuhan City planning to integrate the Metaverse and blockchain, among other 2022 work plan elements into its economy to support an economic recovery. Wuhan City is not alone, with other Chinese provinces and cities, including Shanghai City rolling out crypto-friendly development plans.

Singapore Clamps Down on Crypto Advertising

Amidst all the renewed activity, news hit the wires today of the MAS rolling out new regulations for digital payment token (DPT) providers. The latest rules reportedly bar DPTs from marketing their services in public areas. According to the report, the MAS cites high risks associated with the crypto market for the ban.

In Singapore, public areas include social media platforms and print media as well as public transportation and public transportation venues. For DPTs looking to grow market share in the Republic, it is another blow as adoption increases in other jurisdictions.

Crypto Price Action

Bitcoin (BTC) showed little response to the latest news from Singapore. At the time of writing, Bitcoin (BTC) was down by 1.04% to $42,653.

Binance (BNB) and Crypto.com (CRO) were deeper in the red, however. At the time of writing, BNB was down by 4.25% to $478, with CRO down by 1.88% to $0.4552.

A continued advertising clamp down could slow the recent pickup in adoption and trading activity. Such an outcome would be negative for crypto trading platforms.