Singapore is cracking down on crypto ATMs to prevent buying 'highly risky' assets on impulse

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Singapore is clamping down on digital assets by restricting how they are promoted across the nation. 

The Monetary Authority of Singapore issued guidelines Monday on how service providers should market their digital assets in public. Among the provisions is the banning of cryptocurrency ATMs, embraced by enthusiasts for their easy access, in public areas.

«This could encourage consumers to trade [digital public tokens] on impulse, without fully understanding the attendant risks,» MAS said in a statement. 

Promoting digital assets is also prohibited in public transport, public websites, social media platforms, broadcast and print media, as well as the engagement of third parties, such as social media influencers, MAS added.

Responding to the new rules, Daenerys & Co., Singapore's biggest operator of the machines, halted five of its ATMs in various malls, the company said late Tuesday, as Bloomberg reported.

Daenerys however told Bloomberg it is keeping the ATMs closed while seeking clarification from the central bank. It is among the more than 100 firms operating various crypto-related services in Singapore.

Singapore's central bank, however, clarified that it is not against new innovation.

«MAS strongly encourages the development of blockchain technology and innovative application of crypto tokens in value-adding use cases,» Loo Siew Yee, the central bank's assistant managing director of policy, payments, and financial crime, said in a statement. «But the trading of cryptocurrencies is highly risky and not suitable for the general public.»

As such, service providers, she said, should not portray the trading of crypto assets in a manner that «trivializes» their inherent high risks.

Singapore