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MAS advises caution on transactions involving Bitcoin

SINGAPORE — The Monetary Authority of Singapore (MAS) has advised consumers and businesses to be cautious with transactions involving Bitcoin, as virtual currencies are unregulated and consumers may not have legal recourse should there be problems.

The MAS closely monitors international developments and it will consider the need to introduce regulations to address risks associated with virtual currencies. PHOTO: REUTERS

The MAS closely monitors international developments and it will consider the need to introduce regulations to address risks associated with virtual currencies. PHOTO: REUTERS

SINGAPORE — The Monetary Authority of Singapore (MAS) has advised consumers and businesses to be cautious with transactions involving Bitcoin, as virtual currencies are unregulated and consumers may not have legal recourse should there be problems.

The warning came as Singapore’s first Bitcoin machines made their debut last week. The MAS referred to them as vending machines as they accept cash for Bitcoins, but do not allow people to convert their Bitcoins into cash.

“Virtual currencies, including Bitcoin, are not legal tender and are not recognised by the MAS as an official medium of exchange or as a form of securities. The MAS does not regulate Bitcoin, including its purchase, sale or use, whether online or via other means such as physical vending machines,” the central bank said in a statement.

The MAS also warned that the value of a virtual currency such as Bitcoin can fluctuate greatly within a short period of time.

“Consumers and businesses may suffer monetary losses as a result of the volatile prices. They may also be unable to obtain a refund of their monies should such a scheme cease to operate and may have no legal recourse as Bitcoin is not issued by any identifiable organisation,” it said.

The MAS added it closely monitors international developments and it will consider the need to introduce regulations to address risks associated with virtual currencies such as money-laundering and terrorist-financing.

Singapore-based Tembusu Terminals installed what it called “Singapore and Asia’s very first Cryptocurrency and Bitcoin Automated Tele-exchange Machine” inside a small bar called The Spiffy Dapper in Boat Quay on Feb 27.

A day later, Singapore saw its second Bitcoin machine when local operator Bitcoin Exchange debuted a unit at CityLink Mall. Bitcoin Exchange said it has plans to install more Bitcoin machines in Singapore by the end of the year. Kevin Lim, with additional reporting from Agencies

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