Monetary Authority of Singapore adds Bitcoin in Regulation Bill of Payment services
Bitcoin Exchange Regulation
Regulation is being passed by the Monetary Authority of Singapore to bring several retail payment services that will include Bitcoin under one legislation. The Monetary Authority of Singapore (MAS) announced on Tuesday as it launched its second consultation of the Payment services bill. This bills main aim is to regulate all payment services and bring them together into one legislation.
Among the noted developments is the bringing on board cryptocurrencies like Bitcoin exchange platforms. The digital currencies will be put under regulatory preview. MAS will act to protect consumer’s funds as well as look into money laundering and terrorist financing risks.
If the bill is passed payment firms including Bitcoin exchanges will be required to have a license under the framework. According to the managing director Ravi Menon: “The framework has been designed to include all domestic money transfers. This transfers will include merchant acquisition and the buying and selling of cryptocurrencies. All payments activities that come into contact will merchants and customers, including transactions and have regulatory concerns must be licensed.”
The managing director went on to add that: “We want to place a platform that will encourage more people to adopt due to secure e-payment solution. The licensing is aimed at regulating and reducing risks that come during payment activities. This will create a good environment for payments services growth dues to merchants and customers protection.”
MAS view on Bitcoin
The opened second consultation will be open until January 8th, 2018. Even though DBS which is Singapore’s largest bank which is also state-owned claimed Bitcoin is a Ponzi scheme, the head of the central bank Menon said that the potential of cryptocurrencies is beyond the store of value. He said they would be very effective for cross-border payments.
In his statement, Menon said that: “If the cross-border payment was going through blockchain it would be beneficial. This should be what is looked into rather than concentrating on whether Bitcoin or Ether is rising or dropping.” He actually stated that Bitcoin alone does not have risks that require regulation what requires regulations are the activities around Bitcoin. So he specified that the regulation would be on the Bitcoin exchange and not the Bitcoin itself.