Virtual Currency Regulation in Singapore

Abstract

Virtual currencies present many challenges for regulators, not least the concern that it might be the via media for money laundering and terrorist financing. Thus, even as liberal economies embrace the new medium for the transfer of value globally, they face, first, the challenge of designing safeguards against such risks without chilling its use for legitimate purposes and, second, the issue of whether virtual currency holders' interest are adequately protected. This article examines the policy concerns that regulators in Singapore face as they seek to navigate the challenge of encouraging virtual currencies while addressing the risks they present.