Stablecoin, non-fungible tokens as well as transferable gaming or streaming credits will also be covered under this initiative that focuses on firms providing services in payments, trading and transfers of these assets, one of the people said. Even with such guidelines, the banks will decide whether to accept these clients based on their risk appetites, the people said.
The crypto industry has long struggled for ready access to traditional banks, many of whom remain wary of the volatility in digital assets and potential regulatory heat, particularly in the wake of high-profile failures at firms from FTX to Terraform Labs. The collapses of US lenders Silvergate Capital Corp. and Signature Bank, which provided payment services for crypto firms, have also set clients scrambling for new banks.
There are no rules stopping banks operating in the country from doing business with firms handling cryptocurrencies or other forms of digital assets, the Monetary Authority of Singapore said in response to queries from Bloomberg.
“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,” the MAS said, without commenting on the project. “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.”
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Even so, some firms in the country had previously faced difficulties opening bank accounts, as domestic lenders were concerned about potential illicit flows and other criminal activities.
Singapore has seen its fair share of crypto scandals from firms that were based in the country, like Terraform Labs and crypto hedge fund Three Arrows Capital. It is among major jurisdictions that have established a licensing regime for the industry, and has proposed more curbs on crypto trading by retail investors.
