Cryptocurrency regulations in Singapore still mean that the cryptocurrency has a friendly market over in Singapore as they are legal. The Singapore Monetary Authority also has a reasonably soft commitment to the exchange but regularly issues warnings about the risks to the public.
Singapore became the first nation to begin controlling the usage of cryptocurrency in 2014 when much of the world was already naive regarding it.
The deputy prime minister of Singapore, Tharman Shanmugaratnam, announced that the financial regulators would not differentiate between fiat currencies and cryptocurrencies. It also explained that the Central Bank would enforce current cryptocurrency regulations or legal conditions on crypto operations.
The deputy prime minister stated that the usage of cryptocurrencies for transactions in Singapore is restricted, and trade sizes are far smaller than nations like Japan and South Korea.
Cryptocurrency regulations in Singapore
The fundamental duty of MAS is to ensure that cryptocurrencies do not participate in money trafficking, terrorism funding, or any other financial crimes. In the case of exchanges, the essential prerequisite to acquire a license is that it will provide protection for the funds of its customers, avoid money laundering and terrorism funding, maintain track of transactions and monitor any suspicious behavior.
Although there is no KYC format currently, exchanges are encouraged to seek verification from their clients.
Companies who have opted to recognize payment in the form of cryptocurrency are subject to the country’s regular income tax legislation. Taxes will be focused on a net benefit of 17 percent of gross revenue.
Promulgation of laws to regulate cryptocurrencies
The Monetary Authority of Singapore’s on the 28th of January 2020, implemented Payment Service Act (PSA) which required all crypto firms and exchanges based in Singapore to register under current Anti-Money Laundering (AML) and counter-terrorist- financing (CTF) laws.
If a company wants to start a cryptocurrency project in Singapore, apart from the obligations that were mentioned, it also needs to have a specific administering structure. The requirement includes a CEO, a Chairperson, and a Board of Directors responsible for appointments, auditing, resolution of conflicts, and salaries respectively. Other documentary conditions are part of the cryptocurrency regulations.
Currently, the crypto industry is very well served in Singapore, and it is exciting to see potential innovations in cryptocurrency as well as the numerous ramifications of Blockchain technology.