Singaporean regulators are working alongside traditional banks to develop uniform standards for evaluating potential customers in the crypto industry. The collaboration has been ongoing for the past six months.
According to a Bloomberg report Since April 6, the Monetary Authority of Singapore (MAS) has been working alongside law enforcement to help local banks streamline their procedures for opening digital asset service provider accounts. After half a year of cooperation, their results and conclusions for risk management and due diligence would be published in the next two months.
The potential guidelines will also cover the topics of stablecoins, non-fungible tokens (NFT) and transferable game or streaming credits. At the same time, banks will reserve the right to make decisions based not only on guidelines but also on their own risk assessment.
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As MAS representatives specified to journalists, there are currently no rules prohibiting banks from working with digital asset providers:
"Banks make their own determination to initiate or continue a banking relationship with a customer, balancing business considerations and business risk tolerance."
Singapore has established itself as a center for cryptocurrency businesses due to its flexible tax policies, access to diverse tech talent, and convenient location, allowing businesses to operate seamlessly within the region in Asian time zones. However, by the end of 2022 the MAS proposed ban on digital payment token service providers from offering "any credit service" to consumers, including fiat and cryptocurrencies. Back then, local crypto lobbyists expressed their opposition to the proposal.
Currently, local agents they are conducting a probe connected to the failed Terraform Labs and its co-founder Do Kwon. The subsequent collapse of the Terra ecosystem caused a major implosion in the digital asset market, with losses of nearly $40 billion.
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