A 23-year-old Singaporean became the first resident of the country to be charged with unlicensed cryptocurrency trading in accordance with the recently adopted Payment Services Act 2019, reports The Business Times.
Law enforcement authorities of Singapore reported that the accused, whose name was not disclosed, received at least 13 fraudulent fund transfers amounting to S$3,350 in her bank account. The funds were used to buy bitcoin.
The police suggest that the money was obtained from victims of online scams. The operations were carried out “on the instruction of an unknown person” in return for a commission.
In accordance with the law, such crimes are punishable with a fine of up to S $ 125,000 (~ $ 89,690) or imprisonment for up to three years or both.
The Payment Services Act in Singapore was passed in January 2019. Its rules oblige cryptocurrency companies to register and then apply for a payment service provider license.
According to the Monetary Authority of Singapore (MAS), digital token services are subject to existing anti-money laundering and terrorist financing regulations.
According to the adopted legislation, the financial regulator does not distinguish between different types of payment, utility, and security tokens, placing them in the same category of digital payment tokens, which can make it difficult to avoid some regulatory requirements.
Recall, the Singapore Internal Revenue Authority (IRAS) recently amended the guidelines on the taxation of income from digital tokens. The document purports tax exemption for cryptocurrency solo home mined, as well as coins obtained as a result of hard forks and free airdrops.