• Singapore authorities have come up with plans to help banks in the region examine potential crypto clients.
• The upcoming report will address measures such as “diligence” and “risk management” for crypto clients.
• The Monetary Authority of Singapore noted that there are no rules stopping banks from doing business with firms handling cryptocurrencies or other digital assets.
Singapore Authorities Assist Banks To Examine Crypto Clients
The Singapore authorities recently disclosed its latest plan to assist banks in its region examine potential crypto clients. This update comes amid the wake of several global fallouts in the industry.
The combined force of central banks, legal forces and police have been working together over the past six months to post several approaches towards screening service providers from the digital asset sector looking to open a bank account. Over the next two months, they would introduce a new report of guidelines that addresses measures such as “diligence” and “risk management” crypto clients should take note of before having an account with banks in the region. Other aspects mentioned include Stablecoin, non-fungible tokens (NFTs), and transferable gaming or streaming credits for payment, trading, or transferring of these assets.
Despite the guidelines, people familiar with the matter noted that “the banks will decide whether to accept these clients based on their risk appetites”. Meanwhile, The Monetary Authority of Singapore (MAS) noted that “there are no rules stopping banks operating in the country from doing business with firms handling cryptocurrencies or other forms of digital assets”. They added: “As with any other current or prospective customer, banks are required to conduct customer due diligence measures to understand and manage the risk[s] posed by them”. Banks make their own determination of whether to start or continue a banking relationship with a customer, balancing between opportunities and risks associated with providing financial services to customers dealing in digital assets activities.”
In conclusion, it is clear that Singapore remains committed to helping crypto companies best navigate through traditional banking systems while adequately managing any risks associated with them. This move is an important step forward for bridging traditional finance with blockchain technology-driven solutions; making way for innovation while maintaining safety standards throughout all sectors involved – including cryptocurrency businesses seeking bank accounts as well as financial institutions providing their services.
It is encouraging seeing how quickly regulators around the world are responding toward cryptocurrency businesses looking for ways into traditional banking systems – especially since some US-based major crypto friendly banks collapsed recently – Silvergate Bank, Silicon Valley Bank and Signature Bank – leaving many without access to reliable cash flow channels needed for day-to-day operations within this rapidly growing industry