Hailed as a crypto haven of the world, Singapore has embraced an innovative approach toward cryptocurrency and blockchain, thanks to the leadership of the Monetary Authority of Singapore (MAS). After a six-month grace period of license exemption, crypto companies have to acquire a license to operate. In January 2020, the MAS announced a new regulatory framework to cover all Singapore-based crypto businesses and exchanges under anti-money laundering and counter-terrorist financing rules.
As of this writing, crypto service providers were set to be subject to strict rules of the EU’s sixth Anti-Money Laundering Directive (AMLD6) that in part aims to prevent the use of cryptocurrencies in money laundering and terrorist financing by bolstering fraud detection efforts. The European Central Bank stated bitcoin isn’t a currency but a crypto asset, and so refrained from regulating it. Some members of the European Parliament mulled over banning the energy-intensive proof-of-work cryptocurrency mining – the consensus mechanism that Bitcoin uses to mint new coins and validate transactions – but the proposal was scrapped after receiving backlash.
Crypto Trading Book
In April 2018, Pakistan’s central bank issued a statement barring financial companies from dealing with virtual currencies. In April 2019, the federal government introduced new regulations and licensing schemes for crypto firms. Previously, the central bank considered outlawing bitcoin mining and crypto trading while pushing for creating a digital ruble. Authorities, however, prepared a tougher stance toward digital assets that could include banning cryptocurrencies. The Ministry of Finance prepared a bill to restrict trading to licensed platforms and certified wallets. In February 2022, Russia’s government proposed a regulation to license exchanges and tax large transactions to legitimize cryptocurrencies dispelling fears of a possible ban.
It is easy to lose track of whether cryptocurrencies are legal or illegal in India following a flurry of bans and withdrawals. Exchanges must comply with anti-money laundering and know-your-customer laws, and issue disclaimers with their advertisements. India’s Supreme Court, however, overturned the prohibition and the RBI revoked its ban. The government has since provided some clarity with its new crypto legislation in 2022. The law designates cryptocurrencies and NFTs (non-fungible tokens) as “virtual digital assets,” making them illegal as a method of payment but allowing users to trade and invest in them as assets. The Reserve Bank of India (RBI) issued a warning in July 2018 that barred banks, lenders and financial institutions from dealing with cryptocurrencies.
