Singaporean Bitcoin operators to be regulated over laundering fears

The financial regulator of Singapore has stepped up on the task of regulating virtual-currency intermediaries in the city in the hopes of addressing risks that the Bitcoin exchange operators and vending machines could be used for money laundering and terrorist funding purposes.

Bloomberg said the Monetary Authority of Singapore in a statement released yesterday, said it will be requiring the said intermediaries to set up measures to verify the identities of their customers and to tag and report suspicious transactions to city law enforcement.

MAS Deputy Managing Director Ong Chong Tee said in the statement, "Consumers and businesses should take note of the broader risks that dealing in virtual currencies entails and should exercise the necessary caution."

The HKMA also added in an emailed statement today that its regulation would signal a growing list of countries who have acted on overseeing Bitcoin businesses in the country. At the moment, Existing laws in Hong Kong already covers fraudulent and money laundering activities that use digital commodities like Bitcoin.

Head of business development Antony Lewis at Singapore-based virtual currencies exchange itBit Pte said about the HKMA announcement, "This really sets Singapore out as the global leader of virtual-currency regulation. As less professional outfits engaged in questionable activities are regulated out of the market, consumers win."

The city of Singapore's response to the growing concerns in digital currencies followed what is considered Bitcoin's biggest setback. Last month, Japanese exchange operator Mt Gox, folded its operations and filed for bankruptcy protection. The exchange had blamed the loss of over $500 million of Bitcoins via computer hacking by yet to be identified assailants as a key reason for the shutdown.

Bloomberg said that HKMA has reminded the public in its statement that the regulator has cautioned the use of digital currencies since the middle of last year. MAS via chairman and Singapore's finance minister Tharman Shanmugaratnam has said in Parliament on February 21 that the regulator does not recognize the digital currency as legal tender.

Tags

Monetary Authority of Singapore Bitcoin regulation, Mt Gox shutdown

© 2023 Lawyer Herald All rights reserved. Do not reproduce without permission.