Rank: Member Joined: 12/30/2012 Posts: 545 Location: NBI
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State of Digital Currency Regulation
Singapore
The Inland Revenue Authority of Singapore announced in January 2014 that, for tax purposes, it would treat bitcoin like a product, incurring taxes when it is sold for cash or used to pay for goods or services. However, if bitcoin is bought and sold as part of a long-term investment plan, that profit would be considered capital gain, which is not taxed in Singapore.
A couple of months later, the Monetary Authority of Singapore (MAS) announced its plans to regulate certain types of digital currency operators in Singapore; specifically those at the boundaries between cryptocurrencies and sovereign currencies. For example, digital currency exchanges and bitcoin ATMs or vending machines will need to verify their customers’ identities and report suspicious transactions. The aim is to curb the use of digital currency for money laundering and other illicit activities. The MAS will not regulate the acceptance of bitcoin by businesses, calling participation in such transactions a commercial decision in which the Authority should not intervene.
Hong Kong
The juxtaposition of Hong Kong and China, with its porous shared financial border, has surely helped Hong Kong’s rise to prominence. Bitcoin activity in Hong Kong grew quickly after the People’s Bank of China placed restrictions on banks and other financial institutions on the mainland in their dealings with digital currency companies. This led to an influx of money and business from the mainland into Hong Kong businesses.
Interestingly, the Hong Kong government does not consider Bitcoin an electronic currency, and the Hong Kong Monetary Authority has stated it has no current plans to directly regulate Bitcoin companies. They may however choose to do so in the future, following the lead of the EU or US. Consumers and businesses are free to use Bitcoin as long as they pay relevant sales or personal taxes.BITCOIN TRADERS KENYA Whatsapp group +254 705 299 429
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