Showing 21 Q&A Sections for "crypto"

  • Nature of Cryptocurrencies
    • Universal
      • What is a cryptocurrency?
        "Crypto" refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions. Cryptocurrencies can be mined or purchased from cryptocurrency exchanges." Source: Investopedia
        FinReg
    • Singapore
  • Overview of Crypto trading
    • Universal
      • What is a cryptocurrency exchange?
        "A cryptocurrency exchange is a digital marketplace which enables buyers and sellers to trade cryptocurrencies or other digital assets for fiat money or other cryptocurrencies. The exchange plays the role of an intermediary between the buyer and the seller. Exchanges operate like a brokerage and accept payment through card or other forms of electronic payment in exchange for cryptocurrencies. The cryptocurrency exchange often levies a fee for this process.
        FinReg
    • Singapore
      • How has MAS enforced their regulation towards crypto exchanges?
        It also issued a warning to eight crypto exchanges, stipulating that they inform the regulator before trading cryptocurrencies that are considered securities. This has meant that trading cannot commence until they have been appointed as an approved exchange or market operator." 2020
        FinReg
  • MAS outlook on Cryptocurrency
  • Liquidity risks associated with cryptocurrency exchange services
    • Universal
      • What are the risks/disadvantages associated with centralized crypto exchanges?
        Centralized exchanges (CEXs) are run by a central authority that has full access to customer assets. CEXs fulfil trades much like a fiat exchange, where an order book ensures that there is enough liquidity. However, users on centralized exchanges are prone to liquidity crunches and security breaches. Risks "Insecurity, risk of fund loss and thefts due to their centralized functioning. They are legally accountable and a custodian of users’ funds. 73% of centralized exchanges take custody of u
        FinReg
      • What is liquidity in cryptocurrencies?
        Additionally, the more liquidity available in a cryptocurrency or digital asset, all things being equal, the more stable and less volatile that asset should be. In other words, a liquid cryptocurrency market exists when someone is prepared to buy when you are looking to see; and if you’re buying, someone is willing to sell.
        FinReg
      • How is cryptocurrency liquidity measured?
        Bid-Ask Spread Trading Volume Market Size "Liquidity, unlike other trade analysis indicators, has no fixed value. As a result, calculating the exact liquidity of the exchange or market is difficult. However, there are other signs that can be used as proxies for liquidity in cryptocurrencies. Bid-Ask Spread The gap between the highest bid (selling) price and the lowest ask (purchasing) price in the order book is known as the bid-ask spread. The narrower the spread, the more liquid a crypto
        FinReg
      • What is a liquidity crisis in crypto?
        Why is liquidity so important in crypto? "The ability to quickly and easily convert one unit of an asset into another is an important feature of any marketable asset, including cryptocurrencies. Low liquidity levels indicate market instability, which causes Bitcoin (BTC) price increases. In contrast, high liquidity implies a stable market with low price changes." What is a crypto liquidity crisis?
        FinReg
  • Overview of Crypto fund
    • Singapore
      • Understanding crypto fund management
        With the growing popularity in crypto-assets, it is vital to entrust a trusted crypto asset management to manage and diversify investment portfolio. Unlike the conventional asset management, Crypto asset management is a new trend of monitoring, trading digital assets on blockchain technology. It is constantly evolving with the goal to effectively optimize the value of crypto investments.
        GYK Group
  • Regulations on Trading and Investing in Crypto Assets
  • Nature of Digital Payment Tokens (DPTs)
    • Singapore
      • Are crypto derivatives regulated in Singapore?
        Crypto derivatives are derivatives contracts, such as futures, options, or contracts for differences (CFD), that reference cryptocurrencies as the underlying asset. In 2020, MAS announced plans to regulate crypto derivatives on approved exchanges under the SFA. However, MAS indicated that it does not plan to regulate all crypto derivatives because it does not want to legitimize all such assets, particularly with regard to retail investors.
        Holland & Marie
      • Do cryptocurrencies fall under the scope of the Payment Services Act?
        When MAS first drafted the PS Act, there existed first generation digital tokens like Bitcoin and Ether that were used for payments – these were commonly known as “virtual currencies” or “cryptocurrencies”.
        Millennium Law LLC
  • Crypto mining regulations
    • Singapore
      • Is crypto mining regulated in Singapore?
        "There is no legislation in the Republic of Singapore that specifically relate to the mining of Bitcoin and other cryptos, although mining of cryptocurrency and Bitcoin in Singapore is not illegal. However, as the cost of energy and space in Singapore is relatively high compared to neighboring countries, the prevalence of mining crypto in Singapore has decreased over time. Crypto miners in Singapore must pay taxes on profits derived from the activity.
        FinReg
  • Tax on crypto transactions
    • Singapore
      • How are cryptocurrencies taxed in Singapore?
        For payment of cryptocurrencies for goods or services, the provider of the goods or services would be taxed on the value of the goods or services because the cryptocurrencies would be treated as intangible property and not legal tender."
        FinReg
      • GST treatment of cryptocurrencies
        For Goods & Services Tax (GST) purposes, the following use of digital payment tokens are exempt from GST or disregarded as a supply: Supply of Digital Payment Tokens from 1 Jan 2020 Exempt Supply The following supplies of digital payment tokens are exempt from GST: Exchange of digital payment tokens for fiat currency or other digital payment tokens Example 1: Exchange of one digital payment token for another You exchange Bitcoin for Ether from
        FinReg
      • As a business loaning cryptocurrency, are crypto loans subject to GST?
        The provision of the crypto loan itself is not subject to GST. 2.1 With effect from 1 Jan 2020, supplies of digital payment tokens will no longer be subject to GST. Specifically: (ii) A supply of digital payment tokens in exchange for fiat currency or other digital payment tokens, and the provision of any loan, advance or credit of digital payment tokens will be exempt from GST.
        FinReg
  • Legal status of crypto assets
  • Overview of Crypto regulations
    • British Virgin Islands
      • How are crypto service providers regulated in the British Virgin Islands (BVI)?
        Recognition of cryptocurrencies/crypto assets "The FSC adopts the FATF's definition of virtual asset, defining it as a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes. Virtual currencies do not, however, include digital representations of fiat currencies." is the financial regulatory authority of the BVI. Regulatory framework "As at the date of writing, ther
        FinReg
      • Setting up a cryptocurrency/blockchain business entity in the BVI
        "Today, cryptocurrency has become popular in those BVI structures which use an international business company “IBC” as part of it. The structure of the crypto currency must have an initial coin offering (ICO) of crypto currency to structure itself as a financial vehicle. An ICO is the accessibility to third party capital. In an ICO, investors exchange cash or monies for a new crypto currency on a blockchain network. Here, the crypto assets become a credit or token to purchase goods or a serv
        FinReg
      • Are cryptocurrencies taxed in the BVI?
        "There are no specific taxes levied against cryptocurrencies in the BVI. The BVI is a tax-neutral jurisdiction and does not have any withholding tax, capital gains taxes, income tax or corporate taxes at the time of writing. In the unlikely event that a BVI entity owns BVI situate land, the entity may be responsible for stamp duties.
        FinReg
    • Dubai
      • Are cryptocurrencies regulated in Dubai?
        Similarly to the FATFs definition of virtual assets, the Virtual Assets Law in Dubai defines virtual assets as a digital representation of value that is tradeable. Law No.4 of 2022 on the Regulation of Virtual Assets (VAL) A digital representation of value that may be digitally traded, transferred, or used as an exchange or payment tool, or for investment purposes. This includes Virtual Tokens, and any digital representation of any other value as determined by VARA.
        FinReg
  • AML/CFT for crypto service providers
    • Singapore
      • How do you KYC a crypto wallet?
        Companies that facilitate crypto transactions in Singapore, including crypto wallets, must comply with the KYC requirements detailed in the Payment Services Act (PSA), which generally follow current FATF and AMLD5 guidelines, unless the company qualifies for an exemption.
        Holland & Marie
  • Nature of payment gateway
    • Singapore
      • Can I use a payment gateway to process crypto payments?
        "The cryptocurrency payment gateway ensures that the merchants and retailers can directly receive payments from their customers by integrating a crypto payment gateway into their list of available payment methods." "The direct payment is in place only because a cryptocurrency payment gateway completely eliminates the intermediaries and third-party that add to the cost of a transaction. The transaction charges, in most cases, or just about the network charges and nothing more!
        FinReg
  • Nature of accepting crypto payments
    • Singapore
      • How does MAS regulate businesses accepting crypto payments?
        Cryptocurrencies are known as "digital payment tokens" in Singapore. Businesses accepting crypto payments are considered as "digital payment token transfer service". 'digital payment token transfer service' means the service of accepting digital payment token from one digital payment token address or account, whether in Singapore or outside Singapore, as principal or agent, for the purposes of transferring, or arra
        FinReg
  • Payment Service providers: Licence application
    • Singapore
      • How many entities are licensed or applying for a licence to deal with cryptocurrencies?
        "The Monetary Authority of Singapore (MAS) has given in-principle approval (IPA) to two more fintech firms to expand their cryptocurrency businesses here. Once all conditions under the IPA have been met, both Digital Treasures Centre (DTC) and Hodlnaut will be able to provide cryptocurrency services in Singapore under the Payment Services Act."
        FinReg
  • Nature of Crypto Payment Gateways
  • Nature of crypto funds
    • Singapore
      • What do I need to do to set up a “crypto fund” in Singapore?
        Payment Services Licence (if applicable) If the crypto fund intends to operate a platform an exchange to offer crypto and digital token/fiat exchange related services, this may constitute as providing a "Digital Payment Token" service under the Payment Services Act. Hence, a Payment Institution License (PIL) is required and certain requirements must be met in order to apply for the PIL.
        PDLegal LLC
  • Regulations for crypto funds
    • Singapore
      • What laws regulate the setting up of a crypto fund in Singapore?
        Depending on business, anyone who wants to set up a crypto fund will need to register as a registered fund management companies (RFMC) or obtain Capital Markets Services License to operate as a licensed fund management companies (LFMC), and/or a Payments Institution Licence (under the PSA). 2021
        FinReg
  • Regulations for all Payment Services Providers
    • Singapore
      • Does the transfer of crypto fall under money transfer services?
        From MAS' regulatory standpoint, crypto is not considered e-money because: "DPT is a concept unique to Singapore and the regulatory regime surrounding it sits alongside that for a more traditional concept of e-money, derived from and very similar to the UK/European concept. It seeks to capture crypto assets like bitcoin and ether – the "classic" virtual currencies. In defining a DPT, Singapore sought to create a mutually exclusive regime from e-money."
        FinReg
  • Overview of Financial Services
    • Singapore
      • How might the upcoming Omnibus Act affect parties involved in cryptocurrency-related activities?
        Based on that definition of VASP, the licensing requirement would apply to firms that deal with or facilitate the exchange of cryptocurrencies, that safeguard cryptocurrencies, or that offer advisory services relating to cryptocurrencies." VASP AML/CFT Requirements: The VASP licensing criteria in the Omnibus Act would also require firms to apply comprehensive AML/CFT measures to their cryptocurrency services.
        FinReg
  • Regulations for accepting crypto payments