Singapore Collaborates with Banks to Set Standards for Scrutinizing Crypto Accounts
Singapore's central bank and police authorities are collaborating with banks to set uniform standards for vetting crypto accounts, while banks will decide whether to accept these clients based on their own risk appetites.
According to a recent report by Bloomberg, Singapore's central bank and police authorities are collaborating with banks to establish consistent standards for scrutinizing crypto accounts. The project has been in progress for around six months, and a separate industry report outlining best practices in areas such as due diligence and risk management is expected to be released in the next two months. This report will concentrate on payment services providers and will cover stablecoins, NFTs, and gaming credits.
The Monetary Authority of Singapore (MAS) has stated that there are no restrictions prohibiting banks from doing business with firms that handle cryptocurrencies or other digital assets. Despite the new guidelines, banks will make their own decisions based on their risk tolerance, according to sources cited by Bloomberg. Recently, US authorities have been clamping down on banks that offer services to crypto customers in an effort to sever ties between the cryptocurrency industry and banking services. Following the closure of crypto-friendly banks such as Signature Bank, Silicon Valley Bank, and Silvergate Bank, crypto companies are searching for banking partners and jurisdictions to conduct business. Other jurisdictions, such as India, have previously taken comparable "shadow ban" measures.
