The World has entered a situation where countries have three distinct views concerning cryptocurrencies.
Some are for cryptocurrencies, those who are against them and the third group are those who are yet to decide and don’t know what to do about them.
The Island Nation of Singapore is one of the pro-cryptocurrency nation-states. Singapore’s Bitcoin buying rivals Maylasian Bitcoin buying,
With zero natural resources which could have been a big boost to the economy of the island, the Singaporeans have built a paradise on earth underpinned by strict rules and codes of behavior.
So, when the 2017 cryptocurrency boom was underway, the Monetary Authority of Singapore took notice.
Singapore Monetary Authority Issues Crypto Warning in 2017
When a bubble was afoot and everyone was rushing headlong into the crypto space without conducting any due diligence, the MAS issued a warning.
While the warning may sound anti-crypto, one has to keep in mind that the careful approach to the matter is what needs to be considered.
The conclusion of the matter is simple: The Singaporeans know that cryptocurrencies are a BIG deal!
Are the Singaporeans Financial Wizards or just faking it?
The Singaporeans are known to be one of the masters of the financial universe.
So much so that finance is one of the foundations upon which the Singaporean economy is based.
The Island Nation has become one of the world’s global financial centers.
As such, their approach to cryptocurrencies and their surrounding technologies should be given notice by anyone in the know.
A Rather Novel Approach
While most of the world was still debating the legalities and functionalities of cryptocurrencies, the Singaporeans were busy doing something else.
Like most forward-thinking countries that want to dip their feet in the crypto space before everyone else, they came up with a regulation specifically for Cryptocurrencies and virtual currencies.
This is what is referred to as the Singaporean Payment Services Act which introduces a framework for the regulation of cryptocurrencies.
Passed by the Singaporean Parliament on January 2019 has shown very specific use case scenarios for all kinds of cryptocurrency tokens.
What makes the Singaporeans approach different is that they treat cryptocurrency tokens just like any other market.
This, of course, gives a big boost to the adoption of Cryptocurrencies!
Singapore’s MAS takes the Crypto Space as the New Normal
The Monetary Authority’s stance taking cryptocurrencies as the new normal is one of those great ways that Cryptocurrencies are fast gaining adoption globally.
The comprehensive nature of the regulations shows that they have done their homework.
They covered everything.
Officially, Singapore has become one of the few Nations in South-East Asia with a complete set of rules for cryptocurrencies.
This, of course, will make Singapore become an undisputed market leader in the crypto-space in the region as well.
Singaporeans and Tax on Cryptocurrencies
Now, the Singaporean tax authority does have a tax on Cryptocurrencies.
What is referred to as the Goods and Services tax which is the main tax on trade of goods and services in the city-state applies to cryptocurrencies.
However, there is a growing consensus for Capital Gains Tax exemption for those who hold unto cryptocurrency tokens for investment purposes.
Digital payment tokens which are used for payments of goods and services will not be subject to this rule.
However, any token pegged to the US Dollar will be subject to the Capital gains tax.
This is one more reason why Singapore is great for cryptocurrency!
The Implications of the Separation of Tokens
This, of course, shows that the Singaporeans have leaped ahead of everyone else to create an environment where Cryptocurrencies can thrive without the US Dollars’ influence.
By doing so, they have made cryptocurrencies to operate strictly according to market forces if they are going to be handled within their jurisdiction.
This sends a strong signal to other global financial centers.
The era of cryptocurrencies has arrived.
It is going to be interesting to see other Nations do the same.
A Major Crypto Rally Maybe in the Works
With Nations like Singapore setting out regulations for the use of cryptocurrencies, a major market push into cryptocurrencies is just around the corner.
This shows from the level headed nature of the Singaporean authorities when it comes to the rules and regulations developed.
They have realized that the cryptocurrency market is about to enter its maturity stage where it now finds its place among the investment alternatives of the world.
The Singaporean authorities have proven their mettle time and time again with different industries.
From, logistics to oil and gas, global finance to name a few.
With cryptocurrencies, they are doing it yet again!
Where the Singaporeans lead, others follow!
This is why Singapore is a great Crypto Climate!
What do you think? Does Singapore have a great Crypto Climate?
Please let us know in the comments below!