Singapore authorities are helping banks screen potential crypto customers

While the crypto industry has seemed to need constant access to traditional banks like never before, especially after the collapse of these major crypto-friendly US banks – Silvergate, Silicon Valley and Signature, it seems the Singapore authorities are not. shying away from the fact but instead look at how you make it possible.

Earlier today was Singapore authorities, revealed its latest plan to help banks in its region screen potential crypto customers. This update comes in the wake of several global fallout in the industry.

Presents new guidance

In accordance Bloomberg citing people with knowledge of the matter, both the central banks of Singapore and legal forces such as the police have since worked together to lay out several approaches to screening service providers from digital assets sector want to open a bank account.

According to the report, this combined force has since been ongoing for the past six months, and in the next two months the authorities will introduce a new report with guidelines that address measures such as “diligence” and “risk management”. crypto clients should be aware of before you have an account with banks in the region.’

Related reading: Binance attempts to secure license to offer crypto services in Singapore again

Other aspects that will be mentioned in the upcoming report include Stablecoin, non-fungible tokens (NFT) and transferable gaming or streaming credits for customers or crypto companies that want to offer services related to payment, trading or transfer of the listed assets.

Despite the guidelines, people familiar with the matter noted, “banks will decide whether to accept these customers based on their risk appetite.”

Meanwhile, MAS told Bloomberg: “There are no rules preventing banks operating in the country from doing business with firms that handle cryptocurrencies or other forms of digital assets.”

The Monetary Authority of Singapore added:

As with any other current or potential customer, banks are required to undertake customer due diligence measures to understand and manage the risk[s] posed by them. The banks themselves decide whether to start or continue a banking relationship with a customer, and balance commercial considerations with business risk tolerance.

Singapore’s stance on crypto

It’s worth noting even with all this news, Singapore’s stance on crypto seems pretty shaky despite the country being a crypto hub. In January, MAS published a proposal proposing a series of measures that include central banks to limit retail customers’ access to cryptocurrency.

Related reading: Singapore Crypto Group Pushes Back on MAS Proposed Token Lending Ban

In addition, it prevents investors from borrowing funds to buy crypto tokens and prohibits firms from lending or staking their coins to generate returns.

While the proposal came as a surprise to some given the country’s goal of being a crypto hub, a crypto group opposed the proposal.

The association considered it overly restrictive, protesting that approving a proposed measure like this would only prompt individuals interested in cryptocurrency token lending to seek other unregulated offshore options.

Regardless of the various news circulating in the industry, the global crypto market has remained calm. Over the past 24 hours, the global crypto market capitalization has fallen by just 1.5%, at the time of writing with a value still above $1.2 trillion.

Featured image from Unsplash, chart from TradingView