The
minister for the Monetary Authority of Singapore (MAS), the nation's central
banking authority, has said the institution is working to create a regulatory
framework for bitcoin payments.
In response
to a question on the matter from an MP, Tharman Shanmugaratnam – who is also
deputy prime minister of Singapore – confirmed that while the MAS "has
been monitoring" cryptocurrencies such as bitcoin and ether, it has no
intention of regulating them. However, certain peripheral activities will
require a legal framework, he said.
MAS, he
went on, is now working to create a new regulatory framework for cryptocurrency
payment services, in order to ensure they are not misused for money laundering
and terrorism financing.
In the
statement, Shanmugaratnam clarified that, while MAS has yet to produce a
targeted regulatory framework uniquely for ICOs, it will do so if deemed
necessary.
Shanmugaratnam
explained:
"Virtual currencies can go beyond being a means of payment, and evolve into "second generation" tokens representing benefits such as ownership in assets, like a share or bond certificate. These are financial activities that falls under MAS' regulatory ambit."
The
minister also said that while cryptocurrency trading is widely popular in U.S.,
Japan and Hong Kong, trading volume is relatively low in Singapore. On top of
that, only about 20 Singapore retailers accept bitcoin, according to the the
central banking authority.
In August,
MAS announced that tokens may be classified as securities. Further, the
financial regulator has issued statements warning investors of potential
fraudulent ICO schemes.
Last month,
the bank accounts of a number of bitcoin businesses based in Singapore had
their bank accounts closed without explanation. MAS said at the time that, as
the closure represent a commercial decision taken by banks, it would not
interfere.
Source: Coindesk
Source: Coindesk
