Best Bitcoin Brokers to Trade Crypto in Singapore

Cryptocurrency in Singapore

The Asian city-state of Singapore is known for its progressive approach to cryptocurrencies and blockchain technologies. Government organizations are working to expand the Monetary Authority of Singapore (MAS), Singapore's central bank, even further.

The Singapore government seems to have a master plan to introduce cryptocurrencies into its economy. The South Asian island state could thus become the first country in the world in which blockchain applications and cryptocurrencies form an important part of the economy. In September 2018, Singapore Blockchain Week, one of the world's most renowned blockchain conferences, took place.

The Monetary Authority of Singapore (MAS) gave a lecture on the future of cryptocurrencies. The financial supervisory authority was well informed and open to blockchain technology and virtual currencies. The MAS makes a clear distinction between different types of cryptocurrencies: Use, payment and investment tokens. Damien Pang of MAS explained that there is a greater need for regulation for payment and investment tokens than for usage tokens.

The MAS does not, however, plan blanket crypto bans, but wants to decide on a case-by-case basis: "The MAS takes a close look at the characteristics of the tokens in the past, present and future [. . .]. We don't want to regulate the technology itself, but its use," says Pang.

While China was rigid about crypto currencies and Initial Coin Offerings (ICO) and issued blanket bans, Singapore scores with a crypto-friendly legal situation. The crypto brokers Binance and Upbit recently announced that they would move their headquarters to Singapore.

According to reports, the Education Minister, on behalf of the Deputy Prime Minister and Head of the Central Bank, has tabled a bill in parliament.

If the law is passed, the central bank could regulate local payment service providers itself. This would apply to certain risks and other issues. These include risks from technology and cyberspace, money laundering and terrorist financing.

Also included would be customer insolvency risks, fragmentation and interoperability limitations. Payment service providers in Singapore would have to hold a license to provide their services in accordance with the law.

Singapore's current move is similar to the one announced by Hong Kong a few weeks ago. In an official press release, the Hong Kong Securities and Futures Commission announced a new regulatory framework. This will regulate trading in cryptocurrencies and oblige the cryptocurrency brokers to obtain a license.

Singapore and the Tokenised Assets

The bill followed only about two weeks after another announcement from Singapore. At the end of 2018, for example, the city-state announced that it would develop a new automation method for the rapid settlement of transactions involving tokenized assets. The central bank and the local exchange for commodity futures and securities, Singapore Exchange Ltd.

Part of the development is a delivery versus payment method. This method is based on Smart Contracts and should make the settlement of transactions with tokenized assets across different blockchain platforms possible.

But this project is only one of several that are currently being carried out in Singapore. Singapore is also working with Deloitte, Nasdaq and Anquan on the "Ubin" project. The aim is to bring the Singapore dollar (SGD) to the blockchain and tokenize it.