Veröffentlicht von • Singapore is developing new guidance for banks to vet crypto clients, covering stablecoins, NFTs, and payment/trading services.
• Banks will decide whether to accept crypto clients based on their risk appetite.
• The initiative is likely a response to recent high-profile collapses in the crypto space, including FTX and Terraform Labs.
Singapore Developing New Guidance for Banks Vetting Crypto Clients
Singapore authorities are working with banks on new guidance for vetting cryptocurrency clients, sources close to the matter told Bloomberg. The central bank and police have been helping banks work on their vetting process when opening accounts for service providers in the cryptocurrency and digital asset space.
Guidance Covers Stablecoins, NFTs & Payment/Trading Services
The guidance will cover stablecoins, nonfungible tokens (NFTs) and firms providing services in payments, trading and transfers of these assets. It will also focus on firms that provide services in payments, trading and transfers of these assets. Banks would have the final say in deciding whether to accept cryptocurrency clients based on their risk appetite.
Tighter Regulation Following Recent Turmoil
The guideline to be issued by Singaporean authorities could be considered a way of tightening regulation in the crypto space following the recent high-class collapses. Last year, numerous crypto companies collapsed resulting in billions of dollars lost while more recently Silvergate Bank, Signature Bank and Silicon Valley Bank (SVB) all experienced disruption due to various issues within the crypto sector.
Government Not Stopping Banks From Doing Business With Crypto Companies
At present time the Singaporean government does not prevent banks operating in its jurisdiction from doing business with crypto companies however this latest initiative may signal a shift away from such leniency towards tighter control over operations within this sector of finance.
Conclusion
This latest effort shows that Singapore is taking steps towards ensuring proper regulatory oversight into an industry which remains largely unregulated despite its rapid growth over recent years. The banking industry as well as those involved within cryptocurrencies should pay close attention to how this develops further as it could shape how financial institutions interact with digital assets going forward into future years.