Singapore Bans Crypto ATMs, UK Promises To Clamp Down on Misleading Crypto Ads

by Ilan Hazan
7 ways to make with crypto

Singapore Bans Crypto ATMs, UK Promises To Clamp Down on Misleading Crypto Ads

On Monday (January 17), the financial regulator of one of the world’s most crypto-friendly nations, the Monetary Authority of Singapore (“MAS”), published PS-G02, which was titled “Guidelines on Provision of Digital Payment Token Services to the Public”.

In the Introduction part of this document, the MAS pointed out that it has “consistently warned the public that the trading of digital payment tokens (‘DPTs’) or commonly referred to as cryptocurrencies) is highly risky and not suitable for the general public. The public should not be encouraged to engage in the trading of DPTs.” It went on to say that “DPT service providers should conduct themselves with the understanding that trading of DPTs is not suitable for the general public.”

Section three of the document, which was titled “Provision of DPT services in public areas”, had this to say about crypto ATMs (such as those that allow buying and selling of Bitcoin):

Providing in-person access to DPT services in public areas through the use of automated teller machines (“ATMs”) is a form of promotion of DPT services to the public. Such convenient access may mislead the public to trade in DPTs on impulse, without considering the risks of trading in DPTs. DPT service providers should not provide physical ATMs in public areas in Singapore to facilitate public access to their DPT services.

According to a report published by Fortune earlier today, the following day, the operators of such machines were forced to shut them down. The Fortune report said that, for example, Deodi Pte. Ltd. quickly turned off its ATM network and sent staff to remove its ATMs from shopping centers across the country.

As for the UK, on Tuesday (January 18), BBC News reported that HM Treasury, which is the UK government’s economic and finance ministry, was planning to new regulations to deal with misleading cryptoasset advertising.

Here were the three main takeaways from HM Treasury’s press release:

  • “The government plans to legislate to address misleading cryptoasset promotions.”
  • “Adverts will be brought into line with other financial advertising, ensuring they are fair and clear.”
  • “New rules will increase consumer protection while encouraging innovation.”

Chancellor of the Exchequer, Rishi Sunak, had this to say:

Cryptoassets can provide exciting new opportunities, offering people new ways to transact and invest – but it’s important that consumers are not being sold products with misleading claims.

We are ensuring consumers are protected, while also supporting innovation of the cryptoasset market.

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

Image Credit

Featured Image by “cegoh” via Pixabay

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