Financial service regulator – Monetary Authority of Singapore has issued fresh guidelines to limit crypto trading by the public. It also demanded that cryptocurrency companies refrain from advertising their products or showing them to the general population. MAS supported its decision by citing reasons that were purely risk-oriented.
The guideline stated and clarified that Digital Payment Token service providers “should not portray the trading of DPTs cryptocurrencies in a manner that trivializes the high risks of trading in DPTs, and should not promote their DPT services in public areas in Singapore or through any other media directed at the general public in Singapore”.
“Highly Risky And Not Suitable For The General Public”
According to the Central Bank, such services were approved “highly risky and not suitable for the general public”. This meant that cryptocurrency broadcasting through conventional media like newspapers or magazines had to cease.
Tuesday saw MAS declare that crypto-to-cash terminals would soon be banned. This will result in the closure of all Singapore crypto ATMs. Daenerys & Co, which is one of the biggest crypto ATM operators with five crypto ATMs spread across the city had acted in accordance with the guidelines. Another rival ATM operator, Deodi also complied with the Central Bank’s order and ceased its only ATM.
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This latest regulatory clamping by the MAS came amid the increasing popularity of the Blockchain industry and the influx of new investors into the sector every day. Although MAS claimed that “MAS strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases.”A significant amount of regulatory milestones continue to affect the Singapore cryptocurrency market.
Recently, Coincub, a fintech start-up in one of their rankings, called Singapore the world’s most friendly cryptocurrency economy. Singapore had historically been very open in its cryptocurrency adoption policies, with a friendly and undemanding legislative environment. The reality is quite the opposite.
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MAS Believes Bitcoin ATMs Let People Trade “On Impulse”
MAS thinks that ATMs facilitate a smooth and easy transaction of cryptocurrencies like Bitcoin and Ethereum. This could cause people to trade “on impulse”. This led regulators to order the shutting down of ATMs throughout the city.
Concerning crypto regulation Singapore isn’t the only name on the list. Britain banned advertisements by seven crypto-firms in December 2021. “irresponsibly taking advantage of consumers’ inexperience and for failing to illustrate the risk of the investment”.
Spain has also been a leading force in cracking down on crypto-promotions. Singapore’s regulatory escalation comes after Bitcoin’s prices nosedived almost 40% after BTC soared to new heights in November 2021.
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Not only is cryptocurrency volatile, but it also allows for a broad range of fraud related to digital assets. Cryptocurrency has been used to facilitate money laundering and terrorist funding, among many other illegal actions.
“Digital payment token service providers in Singapore have to comply with requirements to mitigate such risks, including the need to carry out proper customer due diligence, conduct regular account reviews, and monitor and report suspicious transactions,”According to a spokesperson for MAS.
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