Singapore and Spain issue new rules for crypto advertising

The Monetary Authority of Singapore (MAS) has issued a new set of guidelines for digital payment token (DPT) providers, prohibiting them from marketing their services in public spaces.

The guidelines issued on Monday also warn the public about the high risks associated with the cryptocurrency market and ban DPT companies from advertising services in public places such as vehicles – public transport locations, public websites, social networking platforms, media and print.

The new code of conduct applies to all registered and in transition crypto service providers:

“MAS emphasizes that DPT service providers should understand that trading DPTs is not suitable for the general public. These guidelines represent Monetary Authority of Singapore’ expectation that DPT service providers should not offer their services to the public in Singapore.”

The new code of conduct also prohibits cryptocurrency service providers from opening automated teller machines (ATMs) in public areas. However, DPT companies can still promote or promote their services on their native websites or mobile applications. MAS’ decision comes amid the growing popularity of cryptocurrencies, coupled with an increase in the number of physical crypto advertisements in the country.

Spain has a similar move

The Spanish financial regulator Comisión Nacional del Mercado de Valores (CNMV) has announced new regulations on advertising investments in cryptocurrencies. According to a new circular, effective February 17, 2022, cryptocurrency advertising must be “clear, balanced and fair” and contain adequate information about the risks involved in investing in electronic money.

The new rules also require advertisers targeting 100,000 or more people to give the regulator 10 days’ notice. After the initial reporting, the remaining promotional activities will be monitored by CNMV, but no extended reporting is required.

The CNMV also clarified that influencers will fall under the new advertising regulations. The rules apply to crypto service providers who serve ads themselves or through third-party providers such as crypto influencers.

In addition to these rules, CNMV also requires crypto advertisements to include a quote telling viewers that crypto investments are unmanaged and warning that the entire amount invested may be lost. Finally, ads must also contain links to further information.

While the regulator is targeting advertising, asset issuance and other crypto-related services are not covered by the new regulations.

The British Advertising Standards Authority (ASA) also blocks crypto advertising. Last year, the advertising regulator removed the ads from Coinbase, Kraken, eToro, and others for violating regulations. Recently, the ASA banned two Crypto.com mobile app ads.

Crypto advertising has become a growing problem for regulators worldwide, especially since there are very restrictive regulations in the cryptocurrency market. Regulators believe that advertisers often try to hide or not explain the risks associated with crypto trading while promoting high returns.

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