Singapore’s laws do not differentiate between transactions conducted using fiat currency, cryptocurrency or other ways of transmitting value when considering money laundering or terrorism financing , Singapore’s Deputy Prime Minister Tharman Shanmugaratnam said recently.

Shanmugaratnam, who is also the minister in charge of the Monetary Authority of Singapore (MAS), made the statements while responding to a question from MP Foo Mee Har on the levers available to MAS and law enforcement agencies to enforce anti-money laundering and counter-terrorism financing laws that use bitcoin.

“MAS’ AML/CFT requirements apply to all activities of financial institutions, whether conducted in fiat or virtual currencies,” he said.

Further noting the anonymous nature of digital currency transactions, Shanmugaratnam said that the MAS recognizes that they can be used for illegal activities.

“However, at some stage, fiat currency will have to be exchanged for virtual currency, or vice versa, at intermediaries that buy, sell or exchange virtual currency. MAS therefore intends to impose AML/CFT requirements on such intermediaries. MAS is currently conducting public consultation on a proposed Payment Services Bill that will empower us to do this,” he added.

In his concluding remarks, Shanmugaratnam said that the MAS is keeping a close tab on the latest developments in this space and studying the approaches taken in other jurisdictions.