SK Jewellery considering whether to accept crypto currency payments after Bizkey MOU ends

SK Jewellery Group said on Tuesday that it is "evaluating its plans" to integrate the acceptance of crypto currencies at its outlets, following the expiration of its memorandum of understanding (MOU) with blockchain-based point-of-sales (POS) systems provider Bizkey on Jan 27.

The group said on Jan 18 that its subsidiary SK Jewellery has entered into an MOU with Bizkey. Under the MOU, the group worked with Bizkey to integrate six variants of crypto currencies into its POS systems, commencing initially at its newly opened outlet at Marina Bay Sands, followed by all its other outlets upon "successful integration".

The MOU was not legally binding, said the group on Tuesday in response to queries from the Singapore Exchange (SGX). Following the expiration of the MOU, it has stopped accepting crypto currencies at its Marina Bay Sands outlets and reiterated that it "planned to only integrate the acceptance of crypto currencies into its POS systems at all its other outlets should the integration at its outlet located at Marina Bay Sands be successful".

Responding to further queries, SK Jewellery Group said that it will pay Bizkey a conversion processing fee of one per cent for its service.

"The currency conversion will be done between Singapore dollar retail prices and the customers' coin of choice at the point of sale, with the exchange rate based on the said coin's prevailing market value and the entire process during the transition period prior to conversion is managed by Bizkey," said the group.

"All conversion risks of crypto to fiat will also be borne by Bizkey. The accounting treatment of accepting crypto currencies in the group's accounting records will be similar to other forms of payment received, such as credit cards," it added.

In the same SGX filing, the firm made a clarification in response to BT's article published on Jan 24 which outlined the Ministry of Law's warning that crypto currencies are not legal tender and businesses should do due diligence before accepting this form of payment.

BT reported that during Bizkey and SK Jewellery's week-long Token Day campaign, transactions for crypto currency payments on diamonds and gold crossed S$30,000 across three two-hour flash sales. The group said that the amount represents the aggregate actual sales at the outlet during the flash sales periods and were not entirely crypto currency transactions.