Is Cryptocurrency Legal in Singapore?
Cryptocurrency is legal in Singapore and any fair contract or project involving digital assets is allowed in this country. Singapore law is quite friendly and has advanced in dispute resolution, a reason why it used to govern many cryptocurrency contracts. The growth of transactions involving cryptocurrency in Singapore have been skyrocketing and this indicates how the environment is favorable despite the risks related to cryptocurrency.
Who regulates cryptocurrencies in Singapore?
This country has a very effective body called the Monetary Authority of Singapore (MAS) that regulates digital payment tokens considered as security. The body is also responsible for ensuring that money laundering activities that involve cryptocurrencies do not occur.
MAS has put in measures to prevent money laundering and terrorism activities related to cryptocurrency. The measures are categorized in three fronts as follows:
• Digital payment token service providers must be licensed- Any agency that provides cryptocurrency-related services is expected to comply with the Anti-Money Laundering (AML) and the Combating the Financing of Terrorisms (CFT) regulations.
• Surveillance of the cryptocurrency sector- MAS thoroughly scrutinizes every activity that involves cryptocurrency to ensure that no suspicious and malicious acts are done to ill-treat any player in the crypto sector.
• Sensitizing on the risks of investing in cryptocurrency- Due to the high risks involved in crypto products, MAS has in the past issued advisories to people looking to invest in cryptocurrency to be a little more careful.
In January 2020, another regulatory body, the Payment Services Act (PSA), was introduced to refine and merge what was already implemented to form a modular regulatory regime. This is the body to turn to if you want to operate a cryptocurrency business in Singapore and if you are a cryptocurrency operator that wants to understand the money laundering compliance in details.
