Singapore to introduce uniform screening standards for crypto bank accounts

Singapore regulators are working with conventional banks to develop uniform requirements for screening potential clients from the crypto trade. The collaboration has been ongoing for the final six months. 

According to a Bloomberg report from April 6, the Financial Authority of Singapore (MAS) has been working alongside the police forces to assist native banks optimize their procedures for opening accounts of digital asset service suppliers. After half a yr of cooperation, its outcomes and conclusions for danger administration and due diligence can be revealed within the subsequent two months.

The potential tips may even cowl the subjects of stablecoins, nonfungible tokens (NFTs) and transferable gaming or streaming credit. On the identical time, the banks will reserve the proper to make choices based mostly on tips and their very own danger evaluation.

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As MAS representatives informed journalists, at the moment, there aren’t any guidelines prohibiting the banks from working with digital asset suppliers:

“Banks make their very own willpower of whether or not to start out or proceed a banking relationship with a buyer, balancing between industrial issues and enterprise danger tolerance.” 

Singapore has established itself as a hub for crypto companies owing to its versatile tax insurance policies, entry to various tech expertise and handy location, permitting corporations to function easily inside the area in Asian time zones. Nonetheless, in late 2022, the MAS proposed banning digital payment token service providers from providing “any credit score facility” to shoppers, together with each fiat and cryptocurrencies. Again then, native crypto lobbyists voiced their opposition to the proposal. 

Presently, the native enforcers are conducting a probe linked to failed Terraform Labs and its co-founder Do Kwon. The collapse of the Terra ecosystem prompted a significant implosion within the digital asset market, with losses of nearly $40 billion.

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