Cryptocurrencies Declared as Illegal Tender in Singapore
Cryptocurrencies are still relatively new in nature and have only genuinely arisen within the last few years. They were never expected to replace or come to the same level as ordinary paper and coin money within this period, though only time will tell how influential they will become.
Due to their novelty and their highly volatile and changing values through the years, governments are still very cautious when considering whether cryptocurrencies should be afforded the same freedoms and regulations as their traditional physical counterparts. There is also the topic of anonymity which provided with the use of cryptocurrencies, can be an attractive prospect to those with criminal intentions.
Singapore has recently taken a stance on the topic after a recent case in which a company began accepting bitcoin and similar currencies.
Nations are still figuring out just how to handle cryptocurrencies, and in Singapore, there was recently a company called SK Jewelry which began accepting it as a method of payment; this proved to be a successful business tactic for them for the period over which these types of transactions were allowed.
However, it has since been labeled illegal. The reason for this is due to the Law Ministry being unsure of the current systems that are utilized to make sure that unlawful and money laundering activities are restricted.
In time, there may be a change to this view and further to this, technologies may arise which improve the control that is provided to the authorities, though for now, cryptocurrencies are illegal tender.