Singapore's central bank and police help banks review account opening for all types of crypto service providers.
Singapore Plans New Guidance for Banks on Scrutiny of Cryptocurrency Customers
The project has been around for about six months, and an industry report outlining best practices in areas such as due diligence and risk management could be released in the next two months.
It was learned that within the scope of this initiative, which focuses on companies that provide services for payments, trading and transfers of assets, stablecoins, non-exchangeable tokens and transferable game or streaming loans will also be covered.
The Monetary Authority of Singapore said there are no rules preventing banks operating in the country from doing business with firms that process cryptocurrencies or other types of digital assets.
"As with other existing or potential customers, banks are required to implement customer due diligence measures to understand and manage the risks posed by these customers," the Monetary Authority of Singapore said without commenting on the project.
“Banks decide whether to initiate or maintain a banking relationship with a customer, balancing business concerns and business risk tolerance.”
Still, some firms in the country had previously faced difficulties opening bank accounts, as local lenders were concerned about potential illegal flows and other criminal activity.
Singapore has had its fair share of crypto scandals from country-based firms like Terraform Labs and crypto hedge fund Three Arrows Capital.
Singapore is among the major countries that have established a licensing regime for the industry and recommended more restrictions on crypto trading by individual investors.
*Not investment advice.
