The Monetary Authority of Singapore has reportedly decided to shut down cryptocurrency automatic teller machines in the city-state.
Singapore crypto ATMs shut down after central bank crackdown
According to a Bloomberg report citing Daenerys, following a request from the Monetary Authority of Singapore, Daenerys & Co., Singapore’s largest operator of the machines, said late on Tuesday, January 18, that it had suspended operations.
“MAS’s new guidelines regarding ATMs were a surprise,” they stated.
As such, there will be no more operating crypto ATMs in Singapore in the meantime as the city government is taking drastic steps to stop the marketing of digital assets by consumers.
The MAS recently issued new guidance to discourage retail speculation in many asset classes considered volatile. The MAS indicated on January 17 that previous forms of advertising channels such as online platforms, physical advertising, and the distribution of physical automated teller machines (ATM) in public spaces would no longer be used.
Cryptocurrency ATMs provide an easy means to purchase crypto tokens like Bitcoin and Ethereum using cash at any five machines located in shopping malls across Singapore. On the other hand, regulators were not thrilled with the idea of a quick and straightforward option for regular investors to get into cryptocurrency trading, and they specifically addressed ATMs in recommendations announced on Monday.
According to the MAS, such offerings might encourage consumers to trade “on impulse.” Daenerys has said that the ATMs would remain closed till further notice until the central bank provides further information. Meanwhile, another operator, Deodi Pte., said it had shut down its only machine on Tuesday.
Given the notoriously volatile nature of cryptocurrencies, Singapore is not alone in its efforts to protect its citizens from financial ruin. Its letter comes in the wake of Bitcoin’s debacle, with the cryptocurrency losing about 40% of its value from its all-time high in November.
In another development, the UK proposed harsher limits this week on ads that have sprung up across the London Underground. Likewise, Spain’s market regulator has required advertisements for digital assets to include a disclaimer advising investors that they risk losing everything.
While it is true, Spain has made a deal that will see another 100 Bitcoin ATMs deployed in various regions of Spain, which is currently the European country with many of these. Best.
Spain will surpass El Salvador, the first country in the world to accept Bitcoin as legal tender, in terms of the number of crypto ATMs currently in operation following the installation of new ATMs.
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