Singapore Will Not Regulate Cryptocurrency But Will Regulate Crypto-Based Businesses. The chairman of the Monetary Authority of Singapore has announced that the city-state is not officially recognizing the bitcoin as a legal tender. This means that other forms of cryptocurrency may not be interpreted as being legal tender in the country. This comes even as many businesses around Singapore have been using such currencies.
However, the city-state will regulate companies that offer bitcoin payment services. Such cryptocurrencies and ICOs at not interpreted as being within current legislation. They can still be traded but limits on how they are recognized will be used.
The deputy prime minister of Singapore also stated that legal tender is intended to be a form of currency that is valid for managing financial dues. It is understood that some retailers in Singapore, particularly online ones, do accept the bitcoin. Around twenty individual groups in Singapore currently trade the bitcoin and use it as tender for transactions. It is unclear if other cryptocurrencies are also being utilized within the city-state.
But even with this, cryptocurrencies are based more on speculation rather than on definite values that might come about. As a result, it would be difficult to regulate such currencies as there is no real telling where they might go in the future.
Even with this in mind, Singapore still has a rather minimal amount of trading for such currencies when compared with what is available elsewhere. This especially comes as the currency is traded more often in the United States and Japan.
There are also concerns over the anonymous and unregulated nature of cryptocurrencies. The Singapore government has worries that such currencies could be utilized to finance terror-related activities or money laundering functions.
The currency industry, particularly ICOs, will continue to be monitored by the government. This is to determine if any changes should be made. These ICOs are expected to be analyzed based on the money involved and how they are traded over time. This includes a review of different transactions that might be used.
Businesses that do utilize such currencies will continue to be regulated and taxed like other businesses would. Detailed on the specific tax structure that would be utilized are unclear as this moment. The efforts from the Singapore government are being used to analyze problems relating to businesses that use such currencies and if they are likely to engage in suspicious actions.
This development comes amid the closures of many cryptocurrency-based startups in Singapore. Many of these startups had their bank accounts closed up due to the uncertainty involved with whether or not their currencies are actually legal for use.
The government’s move is expected to be important for how the cryptocurrency market will evolve in Asia. This comes as China and some other countries around Asia have been frowning upon cryptocurrencies. Japan and Hong Kong have accepted such currencies in recent time and are supporting businesses that trade with these in mind. Still, the Singapore government is aiming to learn more about such currencies while monitoring how they might be utilized within the country.
