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In brief

The Monetary Authority of Singapore (MAS) requires all providers of cryptocurrency, known under the Payment Services Act (PSA) as Digital Payment Tokens (DPTs), to understand that DPT trading is unsuitable for the general public.

MAS has issued PS-G02: Guidelines On Provision Of Digital Payment Token Services To The Public (“PS-G02“) on 17 January 2022 to all DPT service providers to ensure that their marketing campaigns, advertisements and promotions for buying or selling of DPTs or facilitating the exchange of DPTs are consistent with the risk disclosures under the PSA, which requires that all actual and potential customers be provided with a risk warning statement highlighting the risks associated with trading in DPTs.

While PS-G02 does not set out financial penalties, MAS has indicated it will consider noncompliance as part of its regular supervisory engagement of regulated entities.


Given that prices of DPTs are subject to sharp speculative swings, MAS has consistently taken the position that trading DPTs is highly risky and not suitable for the general public.

Additionally, members of the public who engage in trading of DPTs are not subject to any statutory protection for their trading of DPTs, even though PSN08 Notice on Disclosures and Communications requires DPT service provides to inform their customers of the risks of trading in DPTs, including the warning not to transact in DPT if the customer is not familiar with the DPT.

Where some DPT service providers actively promote their services through online and physical advertisements or through the provision of physical automated teller machines (ATM) in public areas, MAS believes this could encourage consumers to trade DPTs on impulse, without fully understanding the attendant risks.

Scope of new guidance

PS-G02 applies to all DPT service providers, including:

  • Entities licensed under the PSA
  • Entities operating under the transitional exemption
  • Banks
  • All other financial institutions

PS-G02 discourages these DPT service providers from:

  • Portraying DPT trading in a manner that trivialises the high risks of trading in DPTs
  • Releasing any form of advertisements or promotional materials to the general public or a specific consumer segment in Singapore:
    1. In public areas in Singapore, including advertising on public transport or public transport venues, or providing in-person access to DPT services through the use of ATMs
    2. Through any other media directed at the general public in Singapore, including broadcast media, newspapers and magazines, public events or roadshows
  • Engaging third parties, such as social media influencers or third-party websites, including banners or pop-up advertisements on third-party social media platforms
  • Promoting payment token derivatives to the public as a convenient unregulated alternative to trading in DPTs

So long as the risks of trading in DPTs is not trivialised and the promotion is consistent with the risk disclosures required under the PSA, DPT service providers are allowed to promote their services on their own:

  • Corporate website
  • Mobile applications
  • Official social media accounts

Similar actions regulating the advertisement of cryptocurrencies and crypto-assets have been taken by securities market and prudential regulators in other countries. See our other alerts (Spain: New rules issued regulating the advertising of crypto-assets, and Japan: Changes to Japanese cryptocurrency rules).

If you have any questions on how PS-G02 may impact your marketing campaigns, advertisements and promotions for your services and products, or other aspect of risks disclosures, please do not hesitate to liaise with your usual contact at Baker McKenzie or the lawyers listed in this alert.

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Stephanie Magnus co-heads the Asia Pacific Financial Institutions Group and heads up the Financial Services Regulatory Practice Group in Singapore. Stephanie is ranked Band 1 for FinTech in Singapore by Chambers FinTech 2020. She is also ranked as a Leading Individual for Financial Services Regulatory: Local Firms in Singapore by Legal 500 Asia Pacific 2020. She is recognised as a leading lawyer for Banking & Finance: Regulatory in Singapore by Chambers Asia Pacific and Chambers Global 2020. Stephanie was quoted in Chambers Asia Pacific for her "timely, practical and business-oriented" advice, with a "deep understanding of the regulatory regime." She is also recognised as "very business-savvy and brilliant every time," and is admired for her "very strong grasp of the legal issues from both a technical and practical perspective."


Eunice is a principal in the Financial Services Regulatory practice group of Baker McKenzie's Singapore office. She specialises in regulatory, legal and compliance matters in the financial services and fintech sectors. Eunice is recognised in Legal 500 Asia Pacific as the Next Generation Partner for Financial Services Regulatory, where she was "singled out for being smart and having the ability to navigate the Singapore regulatory landscape" and "is responsive, pleasant and willing to explore different parameters" and "is outstanding in that she always carefully and clearly explains the situation and background of the issue so that we can fully understand it, she always has a quick response and she has a deep understanding of the financial industry and our company." Eunice is a frequent speaker at legal and financial industry seminars and forums. She also regularly assists clients in coordinating industry responses and participate in consultation with the Monetary Authority of Singapore on policy and legislative changes.


Ying Yi is a local principal in the Financial Services Practice Group of Baker McKenzie Wong & Leow in Singapore. She focuses on regulatory and compliance issues in the financial services sector.

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