Connect with us
Active Currencies 14794
Market Cap $2,467,692,571,200.00
Bitcoin Share 51.25%
24h Market Cap Change $-0.87

Singapore banks form new alliances for vetting crypto clients

2min Read
Singapore banks form new alliances for vetting crypto clients

Share this article

  • Singapore banks are working with the country’s Central Bank and police to develop a vetting process for crypto clients.
  • The collaboration comes amid severe volatility in the crypto market following several scandals and bankruptcies.

Singapore banks have teamed up with the country’s law enforcement and its Central Bank to come up with a uniform set of standards for vetting potential clients associated with digital assets and the crypto sector. The new initiative is reportedly a response to the bankruptcies and scandals witnessed in the crypto industry over the past few months. 

Banks working with the Monetary Authority of Singapore

According to a report by Bloomberg, the collaboration between the Monetary Authority of Singapore (MAS) and the country’s banks has been going on for the past six months. The aim is to develop a sophisticated vetting process for clients related to the digital asset space.

MAS and the country’s police are part of the banks-led working group on the project. However, even with such guidelines, the banks will decide whether to accept these clients based on their risk appetites. 

The Monetary Authority of Singapore said in a statement that,

“As with any other current or prospective customer, banks are required to conduct customer due diligence measures to understand and manage the risk(s) posed by them. 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.” 

A detailed report related to this collaboration is expected to be published in the next two months. Moreover, sources revealed that the report will lay out the best practices surrounding the vetting process. This will also include guidance on how to conduct due diligence as well as risk management.

Furthermore, this report will also cover Stablecoin, non-fungible tokens as well as streaming credits. The MAS clarified that there are no rules stopping banks from doing business with firms handling cryptocurrencies or other forms of digital assets. 

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.