Singapore Sets Domestic Crypto Rules With Police Authorities

Singapore has successfully designed crypto regulation after taking about 6 months. (Photo; Doc. Yellowblock)

JAKARTA - The Central Bank of Singapore and police authorities have helped banks to set uniform standards in refining verification approaches when opening crypto accounts. This was conveyed by a Bloomberg report citing sources familiar with the matter.

The aim of this project is to increase trust and security in the crypto sector, which has grown rapidly in Singapore in recent years. Singapore is one of the most crypto-friendly countries in the world, with clear and flexible regulations to regulate digital asset activity.

The project has been going on for about six months, Bloomberg reported. Separate industrial reports are expected to detail the best in-plane practices such as mandatory and risk management and could be published within the next two months, Bloomberg quoted sources. Reports focused on companies providing payment services will include stablecoins, NFTs, and game credits.

Stablecoin is a digital asset whose value is associated with fiat currency or other assets, such as gold or US dollar. NFT is a digital token that represents unique ownership of an item or artwork. Game credit is a virtual currency used in online games to buy goods or services.

There are no rules prohibiting banks operating in Singapore from doing business with crypto players / DPT. As with other existing or potential customers, banks are required to take action against the obligations of customers to understand and manage the risks posed by them," a spokesman for the Monetary Authority of Singapore was quoted as saying by Bloomberg.

MAS told Bloomberg that there are no rules blocking banks operating in the country from doing business with companies dealing with crypto or other forms of digital assets. According to sources quoted by Bloomberg, "although with such guidelines, banks will decide whether to accept these clients based on their risk lust".

In recent weeks, US authorities have taken firm action against banks serving crypto customers to cut off the crypto industry from banking services. Banking crypto-friendly banks such as Signature Bank (SBY), Silicon Valley Bank (SVB), and Silvergate Bank (SI) have made crypto companies rush to find banking and jurisdictional partners to do business. In the past, similar "shadow tires" measures have been taken by other jurisdictions, such as India and China.

Singapore seems to want to take a different approach from other countries in terms of crypto. By working with crypto banks and companies, Singapore hopes to create a conducive environment for innovation and growth in this sector. Singapore has also become a home country for some of the world's leading crypto exchanges, such as Binance, Huobi, and KuCoin.