Singapore Authorities Work to Set Uniform Standards for Crypto Businesses

Singapore’s Central Bank and police are helping banks set uniform crypto guidelines for dealing with related businesses.

Singaporean authorities are working on setting up the framework for screening crypto-related businesses. The sources said, “The project has been ongoing for about six months, and an industry report outlining best practices in areas like due diligence and risk management may be published in the next two months.”

The community finds this as good news. A Twitter user writes, “Some clarity at least. Honest players will know how to qualify themselves.”

The Singapore Crypto Guidelines

Singapore’s crypto guidelines will also cover stablecoins and Non-Fungible Tokens (NFTs). But, the banks will have the final say in accepting a client.

The Central Bank – Monetary Authority of Singapore clarified that no rules stop banks from conducting business with crypto clients. 

The MAS says, “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.”

Banks’ Relationship With Crypto

The development comes when the relationship between banks and crypto drifts apart in the US. Following the collapse of the FTX exchange, the US government is believed to have launched a secret Operation Choke Point 2.0 to cut the banking access of the crypto firms.

The collapse of crypto-friendly banks such as Silicon Valley Bank, Silvergate, and Signature has added to the challenges of crypto firms.

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