Singapore-based cryptocurrency ATM companies are shutting down their machines after the Monetary Authority of Singapore (MAS) announced a crackdown on crypto advertising. A report unveiled this news earlier today, noting that among the affected firms is Daenerys & Co., the leading crypto ATM operator in the country.
While the company has shut down its ATMs to remain compliant, it noted that MAS’ new guidelines on ATMs were a surprise. According to the Daenerys, it had installed five ATMs in malls around Singapore. The machines offered the country’s citizens a simple way to purchase Bitcoin (BTC/USD) and Ethereum (ETH/USD).
Daenerys added that it intends to keep its ATMs closed as it awaits clarification from the central bank. Apart from Daenerys, Deodi announced it had shut down its only ATM on January 18.
Although MAS’ intention is cracking down on crypto advertisements, the fact that ATMs offer retail investors a quick way to get involved with digital assets does not sit well with it. In its guide document, MAS noted that such convenient access may mislead the public to trade in crypto on impulse, without considering the risks involved.
Regulators continue clamping down on crypto ads
This news comes as regulators across the globe continue clamping down on crypto advertisements. Apart from MAS, Spain’s National Securities Market Commission (CNMV) introduced restrictions to crypto ads. The regulator noted that the new rules apply to crypto companies, marketing firms hired by crypto companies, and influencers.
Per the guidelines, influencers must disclose whether they were paid to run crypto ads. Additionally, the CNMV mandates them to include clear, balanced, impartial, and non-misleading statements about the risks associated with cryptos in their promotions. For outlets and influencers with over 100,000 followers, the watchdog needs a 10-day prior notice before running the ads.
Companies or people that fail to comply with these rules will be subject to a monetary penalty of up to $342,000.00 (£250,680.87).
Yesterday, the UK government also announced plans to bring crypto advertisements under the regulatory scope of the Financial Conduct Authority (FCA). In so doing, the government hopes to foster innovations while ensuring crypto advertisements are clear and fair.
According to HM Treasury, this move is necessary because roughly 2.3 million people in the UK have embraced crypto. However, research shows that knowledge about crypto is on a decline, meaning there is a high probability that some people do not know what they are buying.
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