Crypto Bank Accounts In Singapore To Follow Uniform Screening Guidelines
Singapore, a leading fintech hub in Asia, has announced uniform screening standards for cryptocurrency bank accounts. This move comes as the government seeks to strengthen its regulatory oversight of the growing crypto industry, which has seen a surge in interest over the past few years.
According to reports, the new guidelines will not have a binding force over banks since they can rely on their risk evaluation. However, the Monetary Authority of Singapore (MAS) will urge banks to adopt these standards.
Singapore’s MAS And Police Collaborate To Revolutionize Digital Asset Banking
Per reports, the Monetary Authority of Singapore (MAS) has been collaborating with the police to assist local banks in optimizing their account opening procedures for digital asset service providers. The findings and conclusions of the six-month partnership regarding risk management and due diligence will be announced in the coming two months.
The forthcoming guidelines will also encompass issues concerning transferable gaming or streaming credits, nonfungible tokens (NFTs), and stablecoins. However, banks can decide based on their risk assessment and the guidelines.
Per the statements made by representatives from MAS, no regulations prevent banks from collaborating with digital asset providers. Banks are responsible for deciding whether or not to engage in banking relationships with customers, taking into account commercial factors and their tolerance for business risks.
Singapore’s Authorities Investigate $40B Losses and Probe Credit Facility Ban
Due to its flexible tax policies, access to varied tech professionals, and strategic positioning, Singapore has become a central location for crypto enterprises to operate efficiently and effectively within the Asian time zones. Nevertheless, the MAS recommended prohibiting digital payment token service providers from providing credit facilities to customers, encompassing both fiat and cryptocurrencies, late last year.
At that time, local crypto advocates expressed their dissent towards this suggestion. The authorities in the area are currently investigating the situation related to the Terraform Labs crash and the leading individual responsible, Do Kwon.
The failure of the Terra system resulted in a significant disruption of the virtual property market, resulting in almost $40 billion in losses. Overall, the move by Singapore to initiate uniform screening standards for cryptocurrency bank accounts is a positive development for the crypto industry.
It demonstrates the government’s commitment to ensuring that the industry operates securely and transparently and will help to build trust and confidence among investors and other stakeholders. As the crypto industry continues to evolve, there will likely be more regulatory developments.
Governments and regulators worldwide recognize the potential of cryptocurrencies and blockchain technology, but they are also aware of the risks of these innovations. However, they are working together to develop robust regulatory frameworks to ensure that the crypto industry continues to grow and thrive securely.
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