Bitcoin has successfully shaken the global economic arena and is continually developing the notion of cryptocurrencies. With its effective penetration throughout the world’s governments, Singapore is also under the target list with 1 bitcoin equaling almost 7818 Singapore Dollar.
Nevertheless, Singapore doesn’t have future plans to regulate such cryptocurrencies like bitcoin. However it will remain vigilant to potential risks emanating from their use like money laundering. The head of the country’s central bank is clear of this specific view.
Regulation of cryptocurrencies is considered as of no use to Monetary Authority of Singapore. Rather the bank is more eager to focus on the activities surrounding the cryptocurrency and remaining alert to the risk prospects they can pose and those risks needing a regulatory response, with a further need of processing.
Mushrooming of these digital assets has already cautioned the eyes of regulators globally though many central banks are still avoiding the supervision of cryptocurrencies. Cities like China and South Korea have even banned the initial coin offerings whereas Russian president Vladimir Putin has allowed the regulation of this sector.
Singapore is specifically of the view that currency itself does not pose and risk that justifies regulation and very few jurisdictions have regulated the cryptocurrencies. But it is clearly evident on the face that these currencies are abused for illegal financing purposes. This results in many countries not wanting anti-money laundering controls tackling the financing of terrorism controls in operation.
Singapore’s law for Initial Coin Offerings (ICO)
Money Authority of Singapore (MAS) stated about ICO’s in August that the position of MAS of not regulating currencies is similar to of most jurisdictions. But MAS has observed that function of digital tokens has been more than just a virtual currency. The head of MAS has even supported this statement and further explained that if the ICO’s promises economic benefits and resemble regular securities offering then it would be covered by Singaporean law. They have agreed to look them case by case to see which one comes under the regulatory ambit.
Bitcoin prices have risen to $6000 for the first time last week, which is an increment of more than 500% since the beginning of the year. This continued even after the criticism from top financial executives and central bankers who terms bitcoin as a product for criminals.
However, Singapore has decided to keep a liberal and open mind about it. They consider it as an area where people have created excessive hype because people perceives it clearly as an investment medium that is going to proliferate in value. This is considered by them a misguided approach towards the usage of cryptocurrencies.
A Singaporean company named TenX have conducted an ICO which raise an approximate of $80 million in the city state in June. This startup is directing its debit card as an immediate convertor of various digital currencies into flat money like yen, euros and dollars. Nevertheless, the situation relating to digital currencies is quite prevalent in Singapore.