24 January 2017
visit http://www.wolterskluwerfs.com

Singapore to tackle money laundering risks in bitcoin transactions

13 March 2014  |  5019 views  |  0 Singapore Building 1

The Monetary Authority of Singapore (MAS) is to regulate virtual currency intermediaries in Singapore to address potential money laundering and terrorist financing (ML/TF) risks.

Virtual currency transactions, given their anonymous nature, are particularly vulnerable to ML/TF risks, says the Authority.

To address this, MAS is to draw up new rules requiring intermediaries that buy, sell or facilitate the exchange of virtual currencies for real currencies to verify the identities of their customers and report suspicious transactions. The requirements will be similar to those imposed on money changers and remittance businesses who undertake cash transactions.

Deputy managing director of MAS, Ong Chong Tee, says: "MAS is taking a targeted regulatory approach to virtual currencies to specifically address money laundering and terrorist financing risks. Consumers and businesses should take note of the broader risks that dealing in virtual currencies entails and should exercise the necessary caution."

He says that the new rules will not extend to the safety and soundness of virtual currency intermediaries nor the proper functioning of virtual currency transactions, pointing out that investors will not have the safeguards enjoyed by equity market participants under the Securities and Futures Act and the Financial Advisers Act.

Singapore has been rapidly re-writing its rule books to take account of the rising popularity of crypto-currencies. Earlier this year, the Inland Revenue of Singpore issued clear guidance to users on how to handle taxation issues arising from bitcoin transactions.

In the UK, meanwhile, the Bank of England, believes that current levels of economic activity and payments involving bitcoin are too light to have a material impact on the bank's monetary or financial stability objectives in the short term.

In its latest quarterly bulletin, the central bank opines that the popularity of digital currencies largely derives from their ability to serve as an asset class. "As such they may have more conceptual similarities to commodities, such as gold, than money," says the bank.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Bitcoin not a currency but has tech potential - Goldman Sachs

Bitcoin not a currency but has tech potential - Goldman Sachs

13 March 2014  |  7886 views  |  7 comments | 10 tweets | 5 linkedin
New York regulator starts accepting bitcoin exchange applications

New York regulator starts accepting bitcoin exchange applications

12 March 2014  |  8551 views  |  0 comments | 6 tweets | 4 linkedin
Bitcoin inventor 'found'; Singapore virtual currency exchange boss dead

Bitcoin inventor 'found'; Singapore virtual currency exchange boss dead

06 March 2014  |  5333 views  |  0 comments | 4 tweets | 2 linkedin
UK rejects VAT on bitcoin trades

UK rejects VAT on bitcoin trades

03 March 2014  |  4843 views  |  0 comments | 7 tweets | 6 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comVisit contisgroup.comvisit wavestone.co.uk

Top topics

Most viewed Most shared
US fintech firms join forces to push data sharing via APIsUS fintech firms join forces to push data...
10544 views comments | 62 tweets | 53 linkedin
HSBC forms tech advisory boardHSBC forms tech advisory board
7081 views comments | 22 tweets | 23 linkedin
hands typing furiouslyBlockchain: Securities market infrastructu...
6280 views 0 | 3 tweets | 3 linkedin
New York regulator blasts OCC over bank charter plan for fintech firmsNew York regulator blasts OCC over bank ch...
6253 views comments | 21 tweets | 15 linkedin
EU watchdog tells FS firms to focus on blockchain security risksEU watchdog tells FS firms to focus on blo...
6065 views comments | 15 tweets | 25 linkedin