Crypto ATMs Shut Down in Singapore Following New Regulations from the Central Bank

It has been reported that bitcoin ATMs in Singapore have been closed due to recent legislation passed by the Monetary Authority of Singapore (MAS), the country’s central bank. Our five cryptocurrency ATMs have been temporarily halted. At the same time, we await more clarification from the Malaysian Anti-Corruption Agency (MAS), which has been notified by “one of the operators of a cryptocurrency ATM” in Malaysia and is investigating the matter.

Per its policies, Singapore’s central bank has prohibited cryptocurrency ATMs following its regulations. Under new guidelines issued on Monday by the Monetary Authority of Singapore, all cryptocurrency ATMs in the country must be shut down immediately (MAS). On Tuesday, Daenerys & Co., Singapore’s biggest ATM operator, informed Bloomberg of its decision to cease operations to comply with the MAS’s request.

The Malaysian Anti-Terrorism Commission’s implementation of new ATM guidelines came as an unexpectedly welcome surprise. The company has set up five bitcoin ATMs in shopping malls in Singapore to accept bitcoin payments. The use of fiat money to purchase and sell bitcoin and ether is an option available to customers, convenient for many. She informed the reporters the following, according to reports, when they questioned Daenerys about her reaction to the dragon venom:

“While we await more clarification from the Malaysian Anti-Money Laundering agency, all transactions at our five ATMs have been suspended until we get it. Although this is the first time the MAS has attempted to shut down cryptocurrency ATMs, it is not the first time the government has attempted to do so. According to its website, the Bank Negara Malaysia (BNM) issued a ban on all associated activity in December.”

In January, the Bank of Malaysia (BNM) said it was rethinking its earlier attitude and was open to engaging with the sector to establish cryptocurrency ATMs in Malaysia. It is unknown if this is still the case or whether Daenerys and her companions’ request for an explanation from MAS has resulted in the restriction being lifted.

It is an unexpected step for Malaysia, a relatively favorable environment for blockchain firms. A reputation for being one of the greatest locations in Southeast Asia to conduct business has developed, and the nation has become a center for cryptocurrency mining activities.

Deodi Pte., a second crypto ATM operator, was also forced to shut down its machines on Tuesday afternoon. A DPT service application has been filed to the MAS by Daenerys and Deodi to operate a DPT service. DPT is widely recognized as a type of cryptocurrency, consistent with previous statements from the Malaysian authorities. Even though the central bank received 170 applications, only 100 were approved or licensed by the bank’s board of directors.

On Monday, the MAS released “Guidelines to Discourage Cryptocurrency Trading by the General Public” on Monday,” urging the general public to avoid cryptocurrency trading. The paper describes the central bank’s position on cryptocurrency trading, and it expressly forbids anyone from trading them at retail venues such as grocery shops and pharmacies.

As stated by the MAS, “cryptocurrencies have the potential to be disruptive technologies that might possibly influence financial stability and disrupt established business models.” Although these technologies may have significant potential advantages, their present level of risk may not be sufficient to warrant their use, according to a statement released on Monday.

The letter also claims that it would actively monitor the cryptocurrency industry, namely “any activity relating to cryptocurrency trading or initial coin offerings.” These activities include the issuance, trading, and usage of cryptocurrency, as well as the promotion, marketing, and advertising of any cryptocurrency-related products or services.”

The MAS also stated that it would be conducting spot inspections on retail establishments to guarantee that no cryptocurrency trading is going place. According to the statement, “We will be performing spot checks to detect instances of cryptocurrency trading and to verify compliance with our aforementioned rules.” The authority said that it collaborates closely with authorities in other nations, such as Japan and South Korea, to keep track of advancements in space.

According to the bank’s instructions, DPT service providers have been actively promoting their services online and in print media and putting actual automated teller machines (ATMs) in public areas. In a statement, Singapore’s central bank stated, “The central bank has emphasized this argument.”

As a result, if this is the case, customers may be more likely to make a last-minute switch to a different DPT provider. The central bank also reminded customers that DPT is not recognized as legal money in Singapore.

Discouragement of potential risks to the general public is another crucial consideration. As a result, the Malaysian Securities Commission (MAS) has issued instructions to prohibit cryptocurrency trading by the general public, including using DPT services. According to the MAS, this decision was part of its ongoing efforts to safeguard consumers and investors from the dangers associated with cryptocurrencies and digital tokens.

The instructions, which were issued on Monday, contain information on how traders may acquire cryptocurrencies directly from exchanges without using a DPT service and information on how traders can sell cryptocurrencies back into fiat money without using a DPT. As a result of the new guidelines, “DPT service providers” are no longer permitted to engage in “marketing or promotion of DPT services” in public places, including through the “provision of ATMs.”

It is not just in Singapore that bitcoin advertising is conducted, but also in other places across the globe. Earlier this week, the United Kingdom government declared that it would tighten bitcoin marketing rules to ensure that it is transparent and authentic.