Singapore is clamping down on digital assets by restricting how they are promoted across the nation.
The Monetary Authority of Singapore issued a guideline on Monday on how service providers should market their digital assets in public. Among the provision is the banning of the cryptocurrency ATM, embraced by enthusiasts for their easy access in public areas.
MAS’s view on Crypto ATMs Shutdown
“This could encourage consumers to trade (digital public tokens) on impulse, without fully understanding the attendant risks,” MAS said in a statement.
Promoting digital assets is also prohibited in public transport, public websites, social media platform, broadcast and print media, as well as the engagement of third parties, such as social media influencers, MAS added.
Responding to the new rules, Daenerys & Co., Singapore’s biggest operator of the machines, halted five of its ATM in various malls, as reported by Bloomberg.
Daenerys however told Bloomberg it is keeping the ATMs closed while seeking clarification from the central bank. It is among the more than 100 firms operating various crypto-related services in Singapore.
Singapore’s central bank, however, clarified that it is not against new innovation.
“MAS strong encourages the development of blockchain technology and innovative application of crypto token in value-adding use cases,” Loo Siew Yee the central bank assistant managing director of policy payment and financial crime, said in a statement. “But the trading of cryptocurrencies is highly risky and not suitable for the general public.”
Watch Video on Singapore’s Crypto ATMs shutdown
As such, service providers, she said should not portray the trading of crypto assets in a manner that “trivializes” their inherent high risks.
Singapore joins countries like the United Kingdom in tightening crypto advertising. The British government recently clamped down on what it called misleading promotion after London saw a record number of crypto-related camping in recent months.
In the US, the government Accountability office warned digital currencies could be used illicitly to facilitate human and drug trafficking, particularly in crypto ATMs.
Worldwide there are over 600 operators that run more than 35,000 crypto ATMs, according to data from Coin ATM Radar.In the US over 260 operators run over 9,000 crypto ATMs.
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