The Singaporean government is doing all it can to suppress the growth of https://profit-builder.org/ in the country. Its latest strategy calls for the closure of all crypto ATMs across all cities and states.
Singapore, until recently, was considered to be one of the most crypto-friendly nations in the world. Citizens are widely accepting the concept of digital currencies and decentralized financial systems. The country has decent legislation and an environment that fosters the speedy adoption of crypto assets. The government argues that these recent developments are significant to preventing fraudulent activities that could be executed through crypto utilization.
Following the introduction of new policies against crypto ads, the Southeast Asian country, through its monetary authority, has closed down all crypto ATMs. Many crypto operators in the country, including Daenerys & Co and Deodi Pte, have announced the shutdown of their crypto ATM stations.
Discouraging Crypto Trades
The Monetary Authority of Singapore (MAS) released the newly approved crypto policies last Monday in a report titled “Guidelines to Discourage Digital Payment Token Services by the General Public.” The central bank reported that it has observed that many Digital Payment Token (DPT) service operators have been advertising their services using online and physical promotional materials. Some have even provided physical automated teller machines (ATMs) in public spaces to provide primary cryptographic services and draw in more users.
The agency declared that all of that is now considered illegal. It stressed that these adverts and crypto ATMs are causing more and more Singaporeans to become involved in crypto trades and the impulsive use of DPTs without having comprehensive knowledge of the potential risks involved.
MAS has issued a deadline for DPT service providers to shut down existing crypto ATMs, remove all physical and online ads within Singaporean public spaces and halt the provision of physical crypto ATMs to cities and states.
What this means for crypto service providers
Most crypto providers have been forced to comply with the new directives, and some have also shut down their entire operations in the country.
Deodi Pre, one of the leading crypto operators in the country, has closed down its crypto ATMs. On the other hand, Daenerys & Co., the biggest crypto ATM operator in Singapore, has indefinitely suspended all cryptocurrency buy or sell services offered through their crypto ATMs. The company, which has five ATMs in budding locations around malls in the cities, revealed that they are currently seeking more clarification from the central bank on the next step to take.
In discussion with Bloomberg, a day after the guidelines were sent out, a spokesperson representing Daenerys & Co. described the MAS request as a surprise. The company’s crypto ATMs enable crypto users to trade cryptocurrencies like Bitcoin and Ether using Singapore’s fiat currency.
Deodi and Daenerys are among a group of crypto providers who applied to the central bank for official permits to render digital payment token services to Singaporean crypto users. The Monetary Authority agency clarified that over 150 crypto service providers applied for licenses; however, only 50 applications are left. The rest either had their applications rejected by the central bank, or they willingly withdrew them.
Other countries are following suit.
Singapore is not the only country enforcing critical policies to restrict crypto trades. Other countries, like the U.K and Spain, have also implemented broader effects to regulate crypto-advertisements in public spaces and on social networks or websites.
Shortly after the Singaporean government announced the new policies, the Spanish government announced that crypto operators must submit all campaigns before being published or uploaded. The government added that all campaigns and adverts must be submitted for approval at least ten days in advance. Similarly, the United Kingdom also put reviews in place to check for deceptive claims put out as part of campaigns by crypto operators.
These countries have watchdogs to detect any slight indication of cryptocurrency deception and fraudulent actions. Giant crypto platforms and operators like Kraken, Crypto.com, and Coinbase were the first to suffer from these advertising clampdowns. In fact, the U.K. advertising standards authority has officially banned mobile advertising apps on Crypto.com.
Finally, these actions by governments worldwide are not out of place because the lack of legislation in the crypto industry has resulted in several malicious activities and a high risk of losing investments. These new policies may serve well till better legislation is approved.