Singapore… for or against Bitcoin? – Voted the most crypto-friendly place on earth last December, the city-state of Singapore has recently taken a step backwards in terms of cryptocurrency adoption. At the request of the Monetary Authority of Singapore (AMS), the 2 major ATM operators have been forced to shut down their Bitcoin ATMs.
An unexpected announcement to start the year
Last week, the Monetary Authority of Singapore called on Bitcoin ATM providers to to suspend the activity of their machines. To justify this new regulation, the Singapore Central Bank claims to want protect the general public of “impulse” purchases suggested by these automatic machines.
The AMS specifies that it does not want to prohibit the purchase and sale of cryptocurrencies, but nevertheless asks companies to do not promote their services related to crypto-assets. Thus, ATM operators Daenerys & Co. and Deodi Pte were forced to submit to the directives of the Central Bank. Used until then to convert cash into cryptocurrency, Bitcoin ATMs deemed too accessible had to be put away.
“To comply with the sudden announcement, we have stopped offering buy or sell services through our ATMs, while seeking further clarification from AMS. »
Daenerys & Co.
Although the news was received as a “surprise” and that all ATMs have been removed, AMS does not provide no penalty towards ATM operators non-compliant.
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Regulation is on
At the end of 2021, the city-state had already made headlines about its recent measures related to cryptocurrencies. A hundreds of companies providing payment services by digital assets were called upon to disappearbecause they did not have not obtained their license from the MAS.
This latest directive, which aims to remove crypto vending machines, is part of a deeper approach than just avoiding too many temptations for the general public. The main fight of the Singapore government remains the struggle against the money laundering and against the financing of terrorism. And it is here that ease of access – while allowing anonymity – posed a problem.
“Digital payment token service providers in Singapore must comply with requirements to mitigate these risks, including the need to conduct appropriate customer due diligence, conduct regular account reviews, and monitor and report suspicious transactions. »
AMS
The objective of the authorities here is clearly the establishment of a KYC (know your customer) succeeded. Operators of crypto ATMs and all other companies in the sector will have to adapt their services to the will of the Monetary Authority of Singapore: to have a base of information on users and thus fight against abuses linked to cryptocurrencies. Regulation has only just begun.
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