Singapore to regulate Bitcoin exchanges, vendors
Play
SINGAPORE - Singapore's central bank said Thursday it will regulate "intermediaries" for the Bitcoin virtual currency to prevent them from being used for money laundering and terrorist financing.
Intermediaries such as Bitcoin exchanges and operators of vending machines were "particularly vulnerable" to being used for such purposes, the Monetary Authority of Singapore (MAS) said in a statement.
MAS said it will introduce regulations requiring middlemen that "buy, sell or facilitate the exchange of virtual currencies for real currencies to verify the identities of their customers and report suspicious transactions".
The requirements will be similar to regulations imposed on money changers and remittance agencies that deal with cash transactions, the central bank added.
"Singapore, like most jurisdictions, does not regulate virtual currencies per se, as these are not considered as securities or legal tender. MAS' regulation of virtual currency intermediaries pertains specifically to the money laundering and terrorist financing risks they pose," it said.
Central bank deputy managing director Ong Chong Tee said "consumers and businesses should take note of the broader risks that dealing in virtual currencies entails and should exercise the necessary caution".
AFP
