Crypto friendly Singapore clampdown on crypto ATM services

Singapore

TL;DR Breakdown

  • Singapore orders crypto ATM providers stops working.
  • Move to regulate crypto advertising to the public.
  • Crypto investors can still access crypto services through other platforms in Singapore.

Authorities in Singapore, a supposed crypto-friendly country, ordered that crypto ATMs across cities in the country be shut down from operating on Tuesday.

Daenerys & Co. and Deodi Pte crypto ATM operators, the two major crypto ATM operators in the city-state, had to comply with the Monetary Authority of Singapore (MAS) order, which they described as an ‘unexpected surprise.’

MAS said it has “consistently warned the public that the trading of digital payment tokens…is highly risky and not suitable for the general public” and reiterated that “the public should not be encouraged to engage in the trading of DPTs.”

“To comply with the sudden announcement, we have ceased to offer buy or sell services via our ATMs while seeking further clarification from the MAS,” a representative from Daenerys said.

Users can still buy cryptos with the crackdown, but it will be more deliberate and less on impulse.

Why the sudden crackdown on crypto ATMs in Singapore?

Reportedly, the crackdown is part of a broader effort by the Singaporean watchdog to regulate advertising cryptocurrency to the public. The central bank released new guidance that bans crypto firms from advertising their services in public places, websites and social networks on Monday.

However, the move remains weird for a country many assume to be crypto-friendly. Coincub, a fintech startup based in the city-state, named Singapore the most crypto-friendly country in the world in December, owing to the city’s “good legislative environment” and “high rate of cryptocurrency adoption.” However, it looks as though things are about to change now.

It is worthy to note that the clampdown on crypto in Singapore comes after similar advertising limitations were enacted in Spain and the United Kingdom. On Monday, the Spanish government required crypto businesses to submit ad campaigns for regulatory approval 10 days in advance, while the U.K. launched a review of cryptocurrency advertising norms, vowing to crack down on products with deceptive claims.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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