CryptoCurrency

Cryptocurrencies Are Not Legal Tender, Says Singapore Law Ministry

Singapore’s Ministry of Law has introduced that the nation doesn’t take into account cryptocurrencies as authorized tender and ordered companies to do vital due diligence earlier than accepting crypto as funds, in accordance with a report by the Business Times.

This got here after SK Jewellery, a series of jewellery shops within the city-state, has partnered with Singapore-based point-of-sale programs startup Bizkey Network to just accept Bitcoin and different digital belongings as cost.

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The suspicious transactions concerned with the dear stone companies to launder cash has pressured the authorities to reiterate its stance on digital belongings.

The jewellery, nonetheless, is assured that it’s following all authorities guidelines and rules whereas accepting funds together with cryptocurrencies.

“The acceptance of crypto merely serves as an alternative choice of cost for our clients and, aside from it being a extra unconventional mode of cost now, it’s enterprise as typical,” a jewellery spokesperson informed the Business Times.

According to the spokesperson, the jewellery has taken the initiative “to partake within the progress story of the digital financial system with out exposing itself to pointless volatility within the cryptocurrency markets.”

Crypto Payments are Popular

SK Jewellery and its associate Bizkey have launched a week-long ‘Token Day’ marketing campaign until 27th January by giving reductions starting from 10 to 20 p.c to clients paying with cryptocurrencies on the acquisition of gold and diamond.

Bizkey is claiming that the marketing campaign is a big success as, in three two hour flash sale, transactions crossed S$30,000.

The Ministry of Law, nonetheless, is skeptical of this initiative and consider that it’d improve the chance of cash laundering and terror financing. “This would come with consideration of the dangers posed by non-cash – for instance, crypto currency-based – transactions,” a spokesperson from the ministry mentioned.

“Therefore, companies which select to just accept cryptocurrency funds ought to be sure that they’ve ample measures in place to mitigate potential cash laundering and terrorism financing dangers, which can come up from these modes of cost. In addition, companies ought to carry out their due diligence earlier than accepting cryptocurrency funds, as cryptocurrencies aren’t authorized tender.”

Rising Concerns

Its been some time the Singaporean authorities are involved about unlawful transactions within the treasured stones market. Last week, the ministry launched a invoice to tighten cash laundering and terrorism financing guidelines within the treasured stones and metals trade. The invoice additionally coated the considerations with the digital asset funds and has proposed an entire framework for them.

 

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David

David is the founder of DebtDefined.com. The firm originates business financing for companies of all size in the Canadian marketplace . Originations include business loans, term loans, asset based lines of credit, SR ED Tax credit financing , and receivable financing .

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