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Virtual Currencies’ Control in Singapore

Jan 22, 2018

Using virtual currencies is now a common practice between business representatives. Breadth of choice in the field of financial instruments makes regulators think of more and more universal types of acts and laws. Many international documents also have requirements for the counter-financing of terrorism and anti-money laundering policies. This puts financial regulators in the position where they should decide whether digital currencies are according to the legislation or they should be banned.

An important statement was issued by the Deputy Prime Minister of Singapore. He claimed that in the matters of money-laundering and terrorism financing, virtual currencies are not distinguished separately. All rules of the AML/CFT policy apply the same way as for money and virtual currencies.

Singapore took up an interesting position: this jurisdiction accepts innovations and helps them to develop, and at the same time makes sure that illegal actions using these innovations are limited and reversed.

Furthermore, controlling Bitcoin currency transactions is not an easy task. The Monetary Authority of Singapore chose quite a challenge by stating their obligation to control as the transactions are anonymous and there is no central clearing house established. However, as soon as these regulations will become common and effective, business safety in Singapore will grow even more.

If you are planning to establish a company in Singapore which will deal with virtual currencies, it is important to consider these novelties pointed out above. MAS declared for now that most control will be imposed on intermediaries who perform exchanges of fiat currency for virtual and vice versa. This means that additional documents, permissions and obligations for business might arise.

In addition, initial coin offerings or ICOs also will have to comply with new regulations. Investors will be more protected than any time before. Registration of your ICO and obtaining an intermediary or exchange operator license is now also a must.

You are still looking for a secure jurisdiction for a company that deals with virtual currency? Consider Singapore as a promising place to base your business. And Offshorelicense Ltd will assist you through every step of organizing it.

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