Banks to Vet Crypto Clients as Singapore Issues New Guidelines
• Singapore is developing new guidance for banks to vet crypto clients.
• The guidance will cover stablecoins, NFTs, and firms providing services in payments, trading and transfers of these assets.
• Banks will decide whether they want to take on crypto clients based on their risk appetite.
Singapore Developing New Guidance for Banks to Vet Crypto Clients
Singapore authorities are working with banks on new guidance for vetting cryptocurrency clients. The guidance will cover stablecoins, nonfungible tokens (NFTs) and firms providing services in payments, trading and transfers of these assets. Banks will decide whether they want to take on crypto clients based on their risk appetite.
Guideline Covering Stablecoin & NFTs
The initiative is set to cover stablecoin and NFTs as well as transferable gaming or streaming credits. The initiative is set to 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.
Project Has Been Going On For 6 Months
The project has been ongoing for roughly six months, and the authorities would soon release an industry report outlining best practices in areas like due diligence and risk management. The sources preferred to stay anonymous as the discussion has not yet gone public.
Tightening 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 such as FTX and Terraform Labs, Silvergate Bank, Signature Bank and SVB which resulted in some crypto clients scrambling for new banks.
Government Not Stopping Banks From Doing Business With Crypto Companies
At the moment, the Singaporean government doesn’t stop banks operating in the country from doing business with crypto companies. While talking