Singapore To Empower Crypto Startups With Banking Services

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has announced that it is working out modalities to empower crypto startups in the city to enable them render banking services or partner with banks.

The hint about the move was given by Ravi Menon, the institution's managing director, during an interview with Bloomberg. Mr.Menon said the government is working to ensure cryptocurrency startups receive domestic banking services as part of the country's efforts to boost fintech development.

According to Mr. Menon the central bank is trying to “bring the banks and cryptocurrency fintech startups together to see if there's some understanding they can reach.”

Menon added that,

“A major issue currently facing Singapore-based crypto startups is that traditional banks are reluctant to open bank accounts because some aspects of the industry could appear “obscure and dangerous” to both regulators and financial institutions.”

The nature of this business is a bit different, so banks may need to employ other ways in which they can establish bona fide, Menon was quoted as saying.

He added:

“I hope we can bring minds together on this so that we can get over this hurdle.”

That said, Menon cautioned that this approach does not mean the MAS will adopt a loose regulatory stance just to attract crypto startups.

However, Menon clarified that the central bank currently has no intention to employ a licensing scheme for crypto exchanges as its Japanese counterpart has done – assigning licenses to 16 Japanese exchanges so far, in part, to help them obtain banking support.

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