Singapore's central bank to regulate virtual currency intermediaries

Source:Xinhua Published: 2014-3-14 8:53:27

The Monetary Authority of Singapore (MAS), the city-state's central bank, said Thursday that it will regulate intermediaries of virtual currency such as bitcoin in Singapore to address potential money laundering and terrorist financing risks.

These intermediaries include operators of Bitcoin exchanges and Bitcoin vending machines.

They will be required to verify the identities of their customers and report suspicious activities to the Suspicious Transaction Reporting Office, requirements that are similar to those imposed on money changers and remittance businesses.

The move means that Singapore will be one of the first countries in the world to regulate virtual currency intermediaries, following the US.

The MAS noted that Singapore does not regulate virtual currencies per se, "as these are not considered as securities or legal tender."

The move aims "to address potential money laundering and terrorist financing risks", the MAS said in a statement.

"Investors in virtual currencies will not have the safeguards that investors in securities enjoy under the Securities and Futures Act and the Financial Advisers Act," it added.

The MAS "will continue to monitor closely the development and implications of virtual currencies as well as evolving regulatory approaches taken towards virtual currencies by major jurisdictions ", it said.

"If necessary, MAS will consider additional measures to address the risks posed by virtual currencies and their intermediaries."

A public consultation will be carried out on these measures.

The controversial bitcoin has been experiencing a hard time recently when Mt. Gox, once the world's biggest exchange for bitcoin, went bankrupt in Tokyo late last month.

Posted in: Economy

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