Singapore Law Ministry Declares Cryptocurrencies As Illegal Tender

The Singaporean regulatory authorities have passed a bill to regulate the use of cryptocurrencies in the country. The bill is aimed at curbing the use of crypto in terror financing and money laundering.

According to a report posted in Business Times, the Singaporean law ministry has declared crypto assets as an illegal tender in the country. The authorities have also requested various businesses operating in the country to be vigilant and do necessary due diligence before accepting crypto as payments.

The regulations came in the wake of one SK Jewelry chain of business retail, who accepted Bitcoin and other altcoins as a mode of payment. The business came under the scrutiny of lawmakers when it was discovered that the retail outlets have become a centre for money laundering.

SK Jewellery Denies any Money Laundering Charges

The business owners behind the SK Jewellery have denied all charges of money laundering and suspicious use of crypto for illegal activities. The owners are confident that they have followed all government guidelines, and cryptos are just another payment method.

One of the spokespeople of the store said,

“The acceptance of crypto merely serves as another option of payment for our customers and, other than it being a more unconventional mode of payment now, it’s business as usual, we have taken the initiative to partake in the growth story of the digital economy without exposing itself to unnecessary volatility in the cryptocurrency markets.”

The Jewellery retailers have also started various discount offers, with up to 10% to 20% off for the customers who decide to pay in cryptocurrency. They are already claiming the initiative a huge success as the two-hour transactions fetched them $30,000.

The Law Ministry is Sceptical of the Initiative

The Singaporean law enforcement agencies are sceptical of the crypto initiative and it believes that an under-regulated crypto market can lead to money laundering and terror funding, as the cryptocurrencies are not easy to track.

One of the officials said,

“businesses which choose to accept cryptocurrency payments should ensure that they have sufficient measures in place to mitigate potential money laundering and terrorist financing risks, which may arise from these modes of payment. In addition, businesses should perform their due diligence before accepting cryptocurrency payments, as cryptocurrencies are not legal tender.”

Singaporean authorities have been sceptical of the usage of cryptocurrency as a method of payment and have introduced a bill to tighten the grip over illegal use of the digital asset. Whether the initiative would be successful in curbing illegal activities related to cryptocurrencies, only time would tell.