Before you start exploring various ways to buy bitcoin, you might be wondering - is Bitcoin legal in Singapore?
Good news! While Bitcoin is not regarded as legal tender in Singapore, cryptocurrency exchanges and trading is legal in Singapore.
Regulations about Bitcoin in Singapore
Local regulators have adopted a relatively innovative approach to cryptocurrency trading, and have implemented forward-looking frameworks to govern the previously unregulated crypto space.
Payment Services Act
The Payment Services Act, which kicked into force on 28 January this year, is an omnibus framework instituted by the local financial regulators for the regulation of payment systems and payment service providers in Singapore. The act aims to mitigate risks associated with money laundering and terrorism financing.
Businesses that fall under the purview of the Payment Service Act will include account issuance, domestic money transfers, cross-border money transfers, merchant acquisition, e-money issuance, digital payment tokens, and money changing.
Under this act, cryptocurrencies such as Bitcoin are classified as “digital payment tokens,” which are defined as:
“Any digital representation of value that is expressed as a unit, not denominated in any currency or pegged to any currency, intended to be a medium of exchange accepted by the public as payment and can be transferred, stored or traded electronically.”
Exchanges and platforms like Coinhako, that facilitate the trading of digital payment tokens are classified as Digital Payment Token Service Providers, formally defined as:
“Digital Payment Token (DPT) service providers can be described as companies or persons who provide either exchange services for DPTs or platforms where these crypto assets can be sold within Singapore.”
While the Payment Services Act does not mandate any safeguarding practices for Digital Payment Token providers, local regulators will continue to monitor trends and review guidelines as and where required.
How is Coinhako aligning itself with local guidelines?
Coinhako has robust AML-CFT measures to ensure a safe and accountable platform for all, including automated Know-Your-Client processes, and verification via MyInfo to streamline the process for our home market in Singapore.
For more info about the Payment Services Act in Singapore, click HERE.
All opinions expressed here by Coinhako.com are intended for educational purposes, taken from the research and experiences of the writers of the platform, and should not be taken as investment or financial advice.