Singapore becomes the second country to regulate bitcoins

Singapore is set to become the second country in the world after the US to regulate virtual currencies such as bitcoins.

Under a new proposal by Singapore's central bank, virtual currency exchanges will need to verify the identities of their customers and report any suspicious transactions.

Singapore said the move is meant to address any potential risks of money laundering or terrorism financing.

David Moskowitz, from Coin Republic, a bitcoin broker and consultancy, explains what the changes mean.

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