Bitcoin ATMs forced to close in Singapore due to new regulations
New guidelines imposed by the Monetary Authority of Singapore (MAS) have forced a couple of Bitcoin ATMs in Singapore to close shop.
New crypto regulation in Singapore
Singapore has thus far been one of the countries with the most favourable regulatory systems for cryptocurrencies. But even that may be about to change, as the Monetary Authority of Singapore (MAS) released new guidelines targeting crypto promotions in the country. As a result, Bitcoin ATMs had to shut down, with operators being forced to comply with the new measures.
Daenery’s & Co., the country’s largest crypto ATM operator, completely shut down operations in Singapore, stating that the new regulation came as a shock to its business. All five of the operator’s crypto ATMs were located in the vicinity of shopping centres, as was the ATM of Deodi Pte., another operator that had to shut down operations. On the company’s website, a statement addressed the issue, saying that “pursuant to MAS notice, we regret to inform you that we have to shut down our public bitcoin machine with immediate effect.”
This somewhat unexpected measure was another dent in Singapore’s reputation as a cryptocurrency hub, with the city-state taking a more hardened stance on what it deems crypto activity outside the grasp of regulators. According to the central bank’s guidelines, “providing in-person access to digital payment tokens (DPT) … in public areas through the use of automated teller machines is a form of promotion of DPT services to the public.” That, however, requires the operators offering these services to register for a licence, something that has been granted to only five companies out of 180 applicants. Coincidentally, Daenerys and Deodi were operators still waiting for their approval.
The country’s Minister for Communications and Information recently stressed at a parliamentary hearing that financial authorities would keep a closer eye on the impact of technologies like NFTs, decentralised finance, and the metaverse on citizens. He stated that the government would seek to balance between promoting economic vitality, preserving social stability, and protecting public security in the digital domain, indicating that Singapore would not be the regulatory free-for-all that some hope it would be.
Are even pro-crypto countries getting stricter?
Singapore has no plans to ban Bitcoin, as it announced as recently as late 2021. However, one cannot help but wonder whether the increased anti-crypto stance by countries like Russia, Kosovo, and Norway even reflects on those with liberal financial regulation.
As cryptocurrencies increasingly move into the mainstream, financial authorities may feel pressured by “the need to do something.” However, too few countries have set up financial sandboxes that allow for a safe environment that countries can experiment in and slowly “get used” to cryptocurrency adoption. With banks pushing back on crypto, consumers are the ones losing out in this deal, as they get the worst of two worlds: too little real protection from scams and rug pulls and a potentially groundbreaking new technology being used as leverage for political goals.
Cryptocurrency innovators and consumers deserve better.