Singapore's MAS is working on new guidelines for crypto bank account verification standards

Singapore's MAS is working on new guidelines for crypto bank account verification standards

Singapore authorities are stepping up efforts to introduce a set of guidelines for banks to vet crypto customers. The city-state's banks have been working with the authorities for six months to establish uniform standards for screening potential customers from the crypto industry.

According to a Bloomberg report, the Monetary Authority of Singapore (MAS) has also joined the banks-police collaborative approach to fine-tuning the vetting approach to opening accounts for service providers in all types of digital assets.

Singapore's new approach

A separate comprehensive report will be prepared that will focus on companies offering payment services and will cover areas such as stablecoins, NFTs and gaming credits. It is also expected to outline best practices in areas such as due diligence and risk management and is expected to be published in the next two months.

There are currently no rules prohibiting banks operating in the country from doing business with firms that deal with cryptocurrencies or other forms of digital assets, as confirmed by Singapore's central bank. The sources familiar with the matter said banks would continue to reserve the right to accept these customers based on their risk appetite, even with such policies in place.

Without providing details of the project, MAS officials said:

"As with any other current or potential customer, banks must conduct customer due diligence to understand and manage the risks they pose. Banks decide for themselves whether to initiate or continue a banking relationship with a customer, balancing commercial considerations with tolerance for business risks."

Crypto problems in Singapore

Singapore had previously positioned itself as a major financial center attracting crypto companies looking for greener pastures.

However, the failures of companies including Terraform Labs (TFL) and crypto hedge fund Three Arrows Capital (3AC) have forced regulators in the city-state to increase oversight of the sector while proposing stricter regulations for crypto retail.

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