Cryptocurrency ATM operators in Singapore got forced to comply with new advertising regulations for digital asset services.
Singapore’s Bitcoin ATMs are shutting down amid restrictive measures recently taken by authorities against the digital currency sector.
Cryptocurrency ATM operators in Asian countries have been forced to close their machines after the Monetary Authority of Singapore (MAS) issued new regulations seeking to limit trading in the new asset class.
The MAS, the central bank of Singapore, issued a set of new guidelines on Monday this week that prohibit companies in the crypto sector from promoting their services through advertising campaigns on public sites, websites, and social networks. The regulation is specifically aimed at providers of digital payment tokens (DPT)
New Guidelines apply to Cryptocurrency ATMs
According to Bloomberg, digital asset ATM operators are choosing to halt their operations to comply with the new regulation. Singapore’s largest crypto ATM operator, Daenerys & Co, told the outlet that the new MAS guidelines “came to an unexpected surprise.” The company added that it will keep the ATMs closed while it seeks clarification from the central bank.
Another local ATM operator, Deodi Pte, announced this week via its website that it has closed its only cryptocurrency ATM in accordance with guidelines. More than 100 companies provide crypto-related services in Singapore, noted Bloomberg.
In the newly announced guidelines, the MAS had highlighted that “providing in-person access” to cryptocurrency trading services “through the use of automated teller machines (ATMs)” represents a form of DPT service promotion. They had also indicated that the convenient access could motivate users to trade cryptocurrencies “on impulse, without taking into account the risks”.
It should be noted that these types of ATMs offer users a quick and easy way to trade cryptocurrencies. Through these devices, people can buy assets such as Bitcoin or Ethereum in exchange for cash.
Governments Turn their Attention to Crypto Advertising
This is not the first time that the central bank of Singapore has carried out efforts that could be interpreted as a crackdown on the digital currency sector. Last year, MAS had warned Binance and other cryptocurrency trading platforms with a presence in the nation that they were operating without the required license.
However, the latest measures have caused surprises for some; especially because of the positive climate that had been glimpsed in the country. Singapore-based fintech startup Coincub had named Singapore the most crypto-friendly country in December, due to its “good legislative environment” and “high cryptocurrency adoption rate.”
The new regulation for the promotion of crypto services in the Asian nation comes at a time when regulators in several countries are enforcing stricter measures for cryptocurrency advertising. Just this week, authorities in Spain and the UK strengthened their rules governing advertisements related to digital currencies.
By: Jenson Nuñez
