Singapore blocks crypto ads as it deems crypto trading unsuitable for the common public. The authorities have called it highly risky, which is right because crypto is very volatile if you compare it to stocks or other assets. Trading of those assets can result in losses too, but more often than not, those losses are limited due to the trading circuits fixed by the government.
Singapore blocks crypto ads
The authorities in the country took this step in order to discourage the masses from trading crypto. Considering the risk involved, it has the potential to wipe off entire portfolios of unaware traders. Recently, it’s been seen that new people in crypto are attracted by the leverage, which is a dangerous affair. Well, the point is, this step is taken by the authorities in Singapore for the welfare of the general public.
The authorities have also been telling companies to refrain from advertising. They have been asking them not to use public places or even 3rd party options like social media to promote crypto services to the public. Even though the reasoning behind this is not bad, the way of going about it seems off. Unless companies are able to advertise, there is no way to reach out to their target audience. And people will stay unaware that something called crypto exists that can be traded to make money if done properly.
The only places these companies are being allowed to promote crypto are their own website, app, and social media accounts. But again, if someone knows about these media channels, they know about crypto as well.
Authorities explain their decision
The Assistant managing director of the Monetary Authority of Singapore said that they “strongly encourage the development of blockchain.” But again, they are against crypto trading due to the risks involved. Many advertisers are promoting crypto trading without appropriately portraying the risks involved, which should be avoided. At the same time, they should refrain from targeting the general public altogether.
What are your thoughts as Singapore blocks crypto ads due to the risks involved in crypto trading? And do you think the right way would have been to regulate the messaging of these ads? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: India’s Prime Minister wants to collaborate on a global level for crypto regulation.
