Deputy Prime Minister of Singapore Talks about Cryptocurrencies
The Deputy Prime Minister of Singapore has decided to make a new statement on the country's position regarding the cryptocurrency market. The Deputy Prime Minister, Tharman Shanmugaratnam, stated that according to the Singaporean financial regulator, cryptocurrencies and fiat currencies are the same thing when it comes to legislation.
Cryptocurrencies covered by anti-money laundering and anti-terrorism laws
Fiat currencies and cryptocurrencies are treated the same under the anti-money laundering and countering terrorism financing laws of the country, Shanmugaratnam said.
Shanmugaratnam clarified that these laws will make no difference between transactions with fiat currencies and transactions made with digital currencies.
Furthermore, Shanmugaratnam clarified that the financial authorities and the central bank of the country will make no distinction between these two types of transactions when they are enforcing anti-money laundering and anti-terrorism laws. The Deputy Prime Minister also clarified that all institutions will be submitted to the same regulations.
One of the main reasons why authorities in Singapore have shown more interest in the cryptocurrency market is linked to the fact that Singapore itself has become an attractive destination for cryptocurrencies.
The cryptocurrency market has started to grow because China has scrutinized its own market. The regulatory climate in China has made many companies eager to search for new opportunities in Singapore.
This means that the pressure on Singaporean authorities has also increased a lot. However, the authorities seem to realize that they are dealing with some issues with regards to transactions involving cryptocurrencies.
Because of challenges, such as the anonymous identify of bitcoiners, most likely anti-money laundering and anti-terrorist financing laws will be imposed on exchanges and brokers.
The growth of the cryptocurrency market in Singapore is definitely making regulators more interested in regulating this market.
Previously, the authorities in this country have claimed that they are not seeking to regulate cryptocurrencies, except for activities that fall under the scope of the Monetary Authority of Singapore.