Singapore Regulators to Develop Guidelines for Banks on Screening Crypto Clients

Singapore Regulators to Develop Guidelines for Banks on Screening Crypto Clients

According to Bloomberg, Singapore regulators are working with police to develop uniform guidelines for banks to aid in screening potential crypto clients. The guidelines aim to help banks optimize their procedures for vetting potential crypto clients who want to open accounts. The Monetary Authority of Singapore (MAS) and police have been working with lenders in the city-state to establish uniform standards for screening clients.

New Industry Report to be Released

An industry report outlining best practices for due diligence and risk management will be released in the next two months. The report is expected to deal with stablecoins, non-fungible tokens (NFTs), transferable gaming or streaming credits, and firms providing payment, trading, and transfer services of digital assets. Banks can still decide whether to accept clients based on risk appetite despite these guidelines.

Singapore does not prohibit banks operating in the country from dealing with digital asset-related firms. However, securing banking services has long been difficult for any entity or person dealing with digital assets, given lenders’ concerns about the illicit flow of money and other criminal activities.

Hong Kong Steps Up as Digital Asset Hub

Hong Kong stepped in to fill the void as Singapore introduced stricter crypto regulations. In October, the Hong Kong government announced introducing regulation to become the next go-to digital asset hub. After introducing an open regulatory framework related to digital assets, Hong Kong caught the interest of over 80 crypto firms, which have expressed their interest in establishing offices in the city and obtaining local licenses.