Singapore regulations renew focus on crypto

Singapore is one of the most innovative and progressive countries in the world. And blockchain technology is not an exception. But nowadays, we can see some changes in this direction. We would like to share an article from Fintechnews Singapore. It displays the current state of the crypto market in Singapore.

Since a lomg time Singapore was a forward-thinking, progressive jurisdiction that supports technology and innovation. This has enticed a horde of cryptocurrency and blockchain startups to set up shop in the nation. However, these companies are now facing roadblocks and finding it rather challenging to operate in the city-state.

New Regulations

Just a couple of weeks ago, operators of crypto ATMs had to shut down their machines. It happened after the Monetary Authority of Singapore (MAS) outlawed cash-to-crypto terminals. The move is part of a wider crackdown on advertising cryptocurrencies to the general public. MAS believes the companies shouldn't engcourage the public to engage in the trading of digital assets.

Singapore saw new guidelines on January 17, 2022 prohibiting cryptocurrency trading service providers from promoting their services to the general public.

Calling Out Crypto ATMs

Specifically calling out ATMs for providing such access and convenience that “may mislead the public to trade in digital payment tokens (DPTs) on impulse, without considering convenient access may mislead the public to trade in 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,” the guidelines say.

Digital Promotion Only

Crypto service providers may promote their services on their own corporate website, mobile apps or official social media accounts. But they mustn’t trivialize the risks of trading digital assets, the document reads.

These companies shouldn’t promote their DPT services in public through any other media directed at the general public in Singapore. And they also shouldn’t engage third parties to advertise their services, it says.

The move is the latest setback for Singapore’s crypto industry. Thats because many are struggling to secure crypto exchange or DPT licenses.

So far, MAS has only granted three licenses out of around 170 companies that applied. Over a hundred organizations have withdrawn their applications or got rejections and at least one has received “in-principle approval.”

Companies that were operating in the country prior to the introduction of the licensing regime were granted exemptions until the outcome of their application is known.

Read more in the Source Fintechnews Singapore: Crypto startups turn to Dubai