Overview:
Cryptocurrencies are not legal tender.
Cryptocurrency exchange platforms are legal, but must register with the Monetary Authority of Singapore.
In Singapore, cryptocurrency exchange platforms and cryptocurrency trading are legal. The city-state has adopted a friendlier stance on cryptos compared to its regional neighbors.
Although cryptocurrencies are not considered legal tender, Singapore's tax authority treats Bitcoin as a "good" and therefore levies goods and services tax (Singapore's version of IVA).
In 2017, the Monetary Authority of Singapore (MAS) clarified that while its position was not to regulate virtual currencies, it would regulate the issuance of digital tokens if those tokens were classified as "securities."
Although it has taken an unbiased approach, in 2020, MAS issued warnings to the public about the risks of investing in cryptocurrency products.
In 2022, MAS reinforced that warning, issuing guidelines for crypto service providers, where it effectively prohibited advertising the services to the public.
In addition, MAS has generally taken a complacent approach to the regulation of cryptocurrency exchange platforms, enforcing existing legal frameworks where possible.
In January 2018, MAS issued a press release warning the public about the risks of speculating in cryptocurrencies. Deputy Prime Minister Tharman Shanmugaratnam stated that cryptocurrencies are subject to the same AML and CFT measures as traditional fiat currencies.
The Payment Services Act 2019 (PSA) brought exchange platforms and other cryptocurrency businesses under MAS' regulatory authority in January 2020 and required them to obtain an MAS operating license.
Since then, MAS has issued licenses to different high-profile crypto service providers, such as DBS Vickers (the brokerage arm of DBS Bank) and Australian crypto exchange platform, Independent Reserve.
#APfinanciero
- This article about Binance was written by Luca Escobar [@PepeBNB] for APfinanciero. We hope you enjoyed reading it and that you learned something new.
