Singapore and Taiwan Adamant against Money Laundering with Bitcoin
It is no secret that there are countries, which already made their position about the use of bitcoin. While some of them are positive about the use of this digital currency, there are also others that discouraged the use or even banned Bitcoin along with other cryptocurrencies. This is a defensive attempt by these countries to protect themselves from any sort of money laundering issues to arise
For instance, the mother currency has been flagged as money laundering in Taiwan. It is one of the latest countries to make comments about Bitcoin regulation. Governor Perng Fai-nan of Taiwan’s Central Bank said that bitcoin should be added to the AML alert notification system in the country in order to prevent money laundering. Despite the bullish performance of the cryptocurrency the past few weeks, Taiwan joins in a slew of countries to issue formal commentary about the necessity of regulation.
For countries like Singapore, the Monetary Authority of Singapore (MAS) says it does not plan to regulate cryptocurrencies, but will remain vigilant on money laundering and other potential risks that may arise from their use. MAS managing director Ravi Menon stated that the bank’s main focus was on looking at activities surrounding cryptocurrencies and evaluating the types of risks they pose that required a regulatory response. This remark shows some friction amid China and South Korea’s move to ban initial coin offerings (ICOs) and Russia’s President Vladimir Putin’s call for regulation over concerns of terrorism finding, among others.
MAS now has a nonpartisan position of zero appreciation in the money. It directs the Singapore dollar against a wicker container of its partners and alters the pace of its appreciation or devaluation by changing the slant, width and focal point of a cash band.
“It is a known fact that cryptocurrencies are quite often abused for illicit financing purposes. And so we do want to have anti-money laundering controls, countering the financing of terrorism controls in place. So, we just have to look at them case by case to see which ones we will need to bring into the regulatory ambit, and which ones can stay outside,” Ravi said.
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