Singapore regulators are seen working with traditional banks for developing uniform standards for screening potential customers in the crypto industry. such potential guidelines are also expected to cover the topics of stablecoins, transferable gaming, streaming credits, and Non –Fungible Tokens (NFTs). However, the potential guidelines will not have a binding force over banks, as the banks will reserve their rights to make decisions based on their risk assessment. Alongside, so far there are also no rules prohibiting banks from working with digital asset providers.
As reported by Bloomberg on April 6, the Monetary Authority of Singapore (MAS) has been helping local banks in optimizing their procedures for opening accounts for digital asset service providers along with police forces. However, its results and conclusions for risk management and due diligence are yet to be published but are expected in the next two months.
Recently, Singapore has emerged as the potential hub for crypto startups and businesses due to its flexible policies, accessibility to diverse tech talent, convenient location, and smooth operations in the Asian time zones. However, as reported by the Monetary Authority of Singapore (MAS) in late 2022 the institution put restrictions on digital payment token service providers from offering any credit facilities to customers. This credit facility included both fiat and cryptocurrencies. That is when local crypto lobbyists voiced their opposition to the MAS proposal.
Not to forget, currently, local enforcers are conducting a probe for the failed Terraform Labs’ co-founder Do Kwon as the collapse of the Terra ecosystem lead to a major implosion in the digital asset market and generated a loss of about $40 Billion.
