SINGAPORE – A distributor for luxury cars in Singapore has started accepting payments in cryptocurrency, an unregulated digital currency.

The company, which distributes the Touring Superleggera brand, said on Monday (April 18) that the ability to accept crypto payments would reduce the cost of transaction fees, simplify cross-border transactions, and enable protected borderless payments.

It also noted that it will “address the growing demand for flexible and easy-to-use cryptocurrency payments”.

Fomo Pay, a digital payment provider, has partnered with the company to accept cryptocurrency payments, which include Bitcoin, Ethereum, USDT, and USDC.

A consumer who purchased an Alfa Romeo car worth $250,000 last month would have used only 3.81 Bitcoins to make the purchase. If he decides to purchase the car this week, he will need at least 4.57 Bitcoin.

As long as Bitcoin’s supply is limited and it is not regulated by any central bank, market analysts predict that volatility will continue.

The Monetary Authority of Singapore (MAS) warns that cryptocurrency trading is highly risky and not suitable for the general public.

More merchants are accepting crypto payments despite the volatile cryptocurrency market.

Luno, which has applied for a digital payment token license from the MAS, announced on April 13 that it has over 10 million customers in 40 countries.

Ms Sherry Goh, global expansion manager and country manager for Singapore at Luno, which is headquartered in London, said: “Singapore is one of Luno’s key markets, given its reputation as a global financial hub with a progressive business environment.

“We witnessed more than 40 per cent year-on-year growth in our customer base between March 2021 and February 2022.

“There is still a continued favour for Bitcoin and Ethereum – as with past years – among Singaporeans. For the past year, 25 per cent of our new customers bought Bitcoin while 20 per cent bought Ethereum.”

Fomo Pay CEO Louis Liu told The Straits Times that the company, which obtained the first digital payment token licence from the MAS last September (2021), has already processed a few cryptocurrency sales, with most cars sold for more than $1 million.

Among the businesses accepting cryptocurrency payments are F1 Auto Cars, Novelship, which sells sneakers and collectibles, 2ToneVintage, which sells vintage watches, and Luxehouze, which buys and sells luxury goods.


CryptoKnight

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