MAS Ensuring Crypto Focused Startups Receive Banking Services

Oct 10, 2018 at 13:17 Update Date :Oct 10, 2018 at 13:17 UTC

The Monetary Authority of Singapore (MAS) is on its way to ensure that cryptocurrency startups accept and receive banking services to lift fintech development.

Ravi Menon, the Managing Director said that, in order to see whether banks and cryptocurrency startups understand each other or not, they’re trying to bring the two together.

He further stated the issue regarding Singapore-based cryptocurrency startups. He said traditional banks are reluctant to open bank accounts because of some industry aspects appears to be ‘obscure and dangerous’ to both financial institutions and regulators.

He quoted about the business too. In his speech, he also said that the nature of the business is a bit different, so in order to establish bona fide, banks need to employ other ways too.     

Menon ended the speech with a hope to bring minds together on this issue and to overcome this hurdle. He cleared in the end that such approach doesn’t imply that MAS will adopt a weak regulatory stance just for the attracting startups. Added to this, he also said that central bank has no such intentions to employ a scheme for cryptocurrency exchanges like the Japanese counterpart has done. The Japanese counterpart assigned licenses to 16 exchanges in order to help them obtain bank support.

A year ago, while calling to see into activities that could abuse crypto, he said that their approach is to have a look at the activities around crypto and then making assessments about rules and regulations that would suit.

When the crypto market touched the all-time high values in January, Menon thought to bring some good applications into attention citing cheap, real-time as an example.

ACCESS Singapore Cryptocurrency and Blockchain Industry Association, confirms that over 10 startups facing problems with Singapore’s financial institutions regarding maintenance of bank accounts.

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