Crypto ATMs Are Suddenly Shutting Down in Singapore

Crypto ATMs Are Suddenly Shutting Down in Singapore

2 years ago

The machines are being targeted by regulators who say crypto trading "is highly risky and not suitable for the general public."

Crypto ATMs Are Suddenly Shutting Down in Singapore


Crypto ATMs are becoming increasingly hard to find in Singapore after regulators issued new guidelines that are designed to "discourage" trading by consumers.

The city-state is imposing rules that stop digital assets from being advertised on public transport, as well as in newspapers and on TV — and enlisting the help of social media influencers is now prohibited.

But in another development that appeared to take businesses by surprise, the Monetary Authority of Singapore also said that the "provision of physical ATMs" is covered under the tougher measures.

The regulator's assistant managing director, Loo Siew Lee, didn't mince her words in Monday's announcement, warning:

"MAS strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases. But the trading of cryptocurrencies is highly risky and not suitable for the general public."

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Crypto ATMs Shut Down

Daenerys — which operates five crypto ATMs in malls across Singapore that allow people to buy BTC and ETH using fiat — told Bloomberg that the machines have been disabled while the business seeks clarity on the rules.

Figures from CoinATMRadar suggest there are tens of thousands of crypto ATMs around the world. A whopping 87.8% of them can be found in the U.S. alone, with just 4% based in Europe.
Regulators are currently playing a game of catch up, and are beginning to introduce tougher guidelines in a bid to protect everyday consumers. Bitcoin has already fallen by 40% from its all-time high set in November, and there are fears that further falls could harm investors. Crypto businesses have also been accused of trivializing life-changing sums of money.
With Spain, the U.K. and Singapore all taking action this week alone, there's a lot of uncertainty and nervousness for businesses right now. Speaking to Decrypt, FTX CEO Sam Bankman-Fried said the crypto regulatory ecosystem is currently on "a knife's edge."

Painting a picture of "disarray and uncertainty" around the world — with many crypto entrepreneurs opting to move to countries with a friendlier stance on digital assets — Bankman-Fried went on to express hope that U.S. lawmakers will become less hostile toward crypto in the years ahead.

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