In Singapore, it is legal to exchange and trade cryptocurrency. Singapore has not many issues with this and has taken a friendlier position compared to other regions. And cryptocurrencies are not considered as legal tenders in Singapore. Even though they are not regarded as legal tender, Singapore’s tax authorities treat Bitcoin as goods. So the goods and services tax is applied to Bitcoin. However, Cryptocurrency exchange is legal in Singapore, which requires no registration. A relatively soft approach has been made to cryptocurrency exchange regulations by the Monetary Authority of Singapore (MAS).
It has applied the existing legal framework where ever possible. However, in January 2018, a press release was issued by the Monetary Authority of Singapore (MAS), which warns the public of Crypto speculation risks. Sopnendu Mohanty, FinTech Chef, and MAS have also indicated that further legislative steps would be required so that cryptocurrency keeps growing. The MAS’s main concern is to make sure cryptocurrencies are not used for terrorist financing, money laundering, or any other financial crimes.
Now let’s talk about cryptocurrency exchange singapore regulations. The Monetary Authority of Singapore has been keeping a close eye on cryptocurrency. The financial authority in March 2018 was working on more robust cryptocurrency regulations mainly to protect the investors. The Payment Service Act (PSA) in Singapore has come into effect on 28th January 2020. According to this act, cryptocurrency businesses will be required to obtain a license from Singapore’s Monetary Authority (MAS).
This includes the business that transfers cryptocurrency both outside and within the state. MAS proposed a new set of regulations in July 2020. According to the new proposed Singapore Crypto Exchange regulation, there will be four new provisions. This will give MAS the power to forbid any unsuitable individual to work in the cryptocurrency business. The Monetary Authority of Singapore wants to press down on financial crimes in the cryptocurrency business. Singapore is emerging as a key hub for cryptocurrency business in Asia. So it is important to protect it from financial crimes.
For bitcoin transactions, you will only need to have the payee’s electronic addresses along with the recipient. It isn’t required to store personal data or install a costly security system to safeguard them. The only disadvantage of bitcoin is the fact that it is not appreciated as a currency but is recognized as a commodity or electronic property, although it’s been labeled as currency. The list of retailers that takes bitcoin is growing daily. Amazon, one of the biggest online shopping sites, has also started taking digital payments.