Uniform Screening Standards from The Crypto Bank In Singapore

Uniform Screening Standards from The Crypto Bank In Singapore

written by John Murphy | April 8, 2023

Banks rely on their risk assessment because they don’t have any specific potential guidelines which can perform as a binding force over banks. In the Singapore crypto industry, screening potential customers have developed uniform standards.

The reason is that Singapore crypto regulations have a traditional bank to work with. This collaboration has been working perfectly for the last six months.

Key Takeaways:

  • Singapore has uniform screening standards for crypto customers.
  • A local bank in Singapore has opened accounts for a digital asset service provider with assistance from the Monetary Authority of Singapore and the police.
  • Guidelines for NFTs, transferable gaming, stablecoins, and streaming credits are being developed.
  • Singapore’s flexible tax policies, diverse tech talent, and convenient location make it a cryptocurrency hub.
  • Digital payment token service providers cannot provide credit card facilities to customers, and non-compliance can have significant consequences for the digital asset market.

According to a report on April 6 that a local bank is opening accounts for a digital asset service provider. Alongside all this procedure, the Monetary Authority of Singapore cryptocurrency and the police are also helping them.

Apart from that, just after a half year of the corporation, the due diligence, result, and conclusion for risk management were said to be published after just two months.

Furthermore, topics like non-fungible tokens (NFTs), transferable gaming, stablecoins, and streaming credits will be covered by potential guidelines. On the other hand, the banks reserve decision-based guidelines and manage their risk assessment.

Currently, the MAS representative told the journalist that no such specific rule could stop banks and digital asset providers from working together. He elaborated:

“If a bank is starting a banking relationship with its customer it comes in their own determination. Apart from that business risk tolerance, and commercial consideration, both can be balanced by the customer only.”

Singapore itself is a cryptocurrency hub because this country owns flexible tax policies. Moreover, accessing diverse tech talent and convenient location is another reason many countries find it easier to work smoothly within an Asian time zone.

Apart from that, digital payment token service providers are not allowed to provide any credit card facility to their customers. They said it doesn’t matter if your consumer uses Fita or cryptocurrencies.

Terraform Labs and its co-founder, Do Kwon, failed due to local enforcement conducting a probe for connection. In the digital asset market, this collapse of the Terra ecosystem is enough to cause a significant impulsion. This impulsion can make every provider lose about $40 billion.