Singapore chooses hands-off approach to cryptocurrency regulation
Singapore has no intention of regulating cryptocurrencies, though it will curb money laundering and other risks associated with the assets, Monetary Authority MD Ravi Menon has said. The city-state requires virtual currency intermediaries follow money laundering and terrorism financing laws, which are due to be formalised in payment services regulations. Many central banks have decided against cryptocurrency supervision, though China and South Korea have banned initial coin offerings and Russia has called for oversight.

SINGAPORE (BLOOMBERG) - Singapore doesn't plan to regulate cryptocurrencies such as bitcoin, but will remain alert to money laundering and other potential risks stemming from their use, the head of the country's central bank said.

"As of now I see no basis for wanting to regulate cryptocurrencies," Monetary Authority of Singapore managing director Ravi Menon said in an interview with Bloomberg News.

Rather, the central bank's focus is to "look at the activities surrounding the cryptocurrency and asking ourselves what kinds of risks they pose, which risks would require a regulatory response, and then proceed from there," Menon added.

Bitcoin's rally and the proliferation of other digital assets is attracting the wary eyes of regulators globally, though many central banks have still refrained from supervising cryptocurrencies themselves. China and South Korea have banned initial coin offerings, while Russian President Vladimir Putin has called for regulation of the sector.

"Very few jurisdictions regulate cryptocurrencies per se. Most have taken the approach that the currency itself does not pose a risk that warrants regulation," Menon said in a separate Bloomberg Television interview with Haslinda Amin.

Singapore already requires virtual-currency intermediaries such as exchange operators to comply with requirements to combat money laundering and terrorism financing, Menon noted in the Bloomberg News interview. "This will be formalised in the coming payment services regulation which we are working on," Menon said.