Bitcoin can be regulated in a number of ways and control of the operators is the choice that Singapore officials decided to make.
Exchanges under watch
So, looks like Singapore government decided to put all paperwork in the hands of the Bitcoin traders. Quite convenient indeed, why regulate transactions if one can just take a sneak peek at those who commit the acts of turning fiat into digital coins and back.
This idea came from the Monetary Authority of Singapore (MAS) previous Thursday. Ong Chong Tee, the Managing Deputy Director has supported the government’s intention with a warning statement that users of the cryptos “should take note of the broader risks that dealing in virtual currencies entails and should exercise the necessary caution.”
Although it is easier said than done. There features to Bitcoin and the cohort of altcoins that followed it that are hard to control in legal way. Most of the laws do not have paragraphs about the official position on digital currencies.
Some countries manage to find analogy in terms of law that are easy to use regarding cryptocurrencies. Japan, for example found that it is much easier to see Bitcoin as goods – “not a currency but taxable” or something like that.