In an effort to crack down on possible money laundering and terrorism funding, the government of Singapore is going to begin monitoring all virtual currencies and transactions that occur within the country. Though one of the main targets of these increased regulations is the controversial bitcoin, it is not the only group that is going to be under the watchful eye of a third party.
The Monetary Authority of Singapore – the country's central bank and financial regulatory agency – will require the use of intermediaries that will act as an outsider who helps to facilitate the ongoing financial transaction. This individual will have to verify the identities of all parties concerned in the deal, as well as reporting any suspicious activities to local law enforcement officials.
While no timeframe has been given for when these new regulations will take effect, experts believe they will be implemented sooner rather than later. This is due to the fact that digital currency has come under scrutiny and major suspicion recently, particularly in the United States, China and Russia. Some market regulators want to see the system banned entirely from legal use.
"Consumers and businesses should take note of the broader risks that dealing in virtual currencies entails and should exercise the necessary caution," Monetary Authority of Singapore Deputy Managing Director Ong Chong Tee said in a public statement.
Digital currencies have become controversial, due to several high-profile cases that are ongoing. Two months ago, Charles Shrem, the founder of bitcoin exchange company BitInstant, was charged in Manhattan for allegedly laundering more than $1 million in bitcoins. The negative attention brought to virtual money from these kinds of stories is what has spurred the Singapore government to take action. They are taking steps to ensure the safety and financial stability of their country.
