Authorities of Singapore are collaborating with conventional banks to set common screening criteria for consumers in the crypto sector. The partnership has lasted for the last six months.
Bloomberg reported on April 6 that the Monetary Authority of Singapore (MAS) has been collaborating with local authorities to assist local banks in optimizing their processes for creating accounts for digital asset service providers.
Following six months of collaboration, the findings and conclusions for risk management and due diligence will be released within the next two months.
In addition to stablecoins, nonfungible tokens (NFTs), and transferable gaming or streaming credits, the proposed rules will also address stablecoins, NFTs, and transferable gaming or streaming credits. The banks maintain the right to make choices based on rules and risk analysis.
According to MAS staff speaking with the media, there are presently no regulations barring banks from collaborating with digital asset suppliers:
“Banks make their own determination of whether to start or continue a banking relationship with a customer, balancing between commercial considerations and business risk tolerance.”
Singapore has positioned itself as a center for crypto enterprises as a result of its liberal tax rules, access to a varied pool of digital talent, and accessible location, which enables businesses to operate across Asian time zones with no disruption.
Late in 2022, however, the MAS suggested prohibiting digital payment token service providers from giving users “any credit facility,” including fiat and cryptocurrencies. Local crypto lobbyists raised resistance to the initiative at the time.
Presently, local authorities are initiating an investigation against the defunct Terraform Laboratories and its co-founder, Do Kwon. The implosion of the digital asset market triggered by the failure of the Terra ecosystem cost almost $40 billion.
