Singapore deploys stringent regulations on cryptocurrency transactions

Singapore deploys stringent regulations on cryptocurrency transactions

The Monetary Authority of Singapore (MAS) has banned cash-to-crypto terminals

Singapore’s progressive jurisdiction and acceptance for change has fostered technology and innovation, notably a group of cryptocurrency and blockchain-based startups to base roots in the nation.

However, despite the nation’s rather welcoming nature, these companies are now hindered by new challenges to operate in the city-state, after operators of the crypto ATMs had to shut down their machines a few weeks ago.

The Monetary Authority of Singapore (MAS) has forced crypto operators to shutdown ATM machines after prohibiting cash-to-crypto terminals.

With this, MAS aims to bring down the extensive advertising efforts of cryptocurrencies to entice the general populous and further underpin nation’s efforts to discourage digital asset trading.

According to the new guidelines released last month, cryptocurrency trading service providers will not be allowed to promote their services to the public, which consequently started by ending ATM services offering access and convenience.

The government agency believes that such easy access can trigger impulsive decisions associated with trading digital payment tokens (DPTs), without rethinking the possibility of convenience exposing the public to risks.

The government guidelines read, DPT service providers under no circumstances operate physical ATMs in public spaces of Singapore solely to appeal the public to their DPT services.

While the crypto service providers can still promote their services on their independent corporate website or mobile applications and social media accounts, MAS prohibits them from undermining the risks of trading digital assets.

The guidelines also entail no third-party engagement for advertising purpose prohibiting crypto entities from facilitating public access.

The recently issued guideline are the newest set of challenges introduced to Singapore’s crypto industry with players currently struggling to get hold of crypto exchange of DPT licenses.

As of now, MAS has authorized 3 licenses of the 170 companies that have applied in Singapore, whereas more than 100 have now withdrawn their request or are rejected by the government agency and at least 1 has been granted “in-principle approval”.

Source credit: https://fintechnews.sg/59341/blockchain/singapore-tightens-regulatory-grip-on-crypto/