Singapore appears to be taking a different approach from its counterparts in the United States, where banks are cutting off crypto customers as part of a clampdown on the cryptocurrency industry. In Singapore, the Monetary Authority of Singapore (MAS) is joining forces with central police authorities to help banks create unified standards when opening crypto accounts.

The project which has been in progress for around six months, reportedly, involves the formation of a document which will provide instructions in areas like verification of customers and risk management for digital currency payments and companies, for example, stablecoins, NFTs and gaming credits.

The MAS has made it clear that there are no laws or regulations to prevent banks operating in the country from facilitating businesses that use cryptocurrencies or digital assets. However, it is up to the banks to decide whether to accept these customers depending on their risk assessments.

Several countries and financial institutions have already taken steps to cut off crypto companies from banking services or bar them from dealing in cryptocurrencies through "shadow ban" steps. As a result, these businesses are finding it hard to find businesses and jurisdictions to operate.

On the other hand, Singapore is taking a pragmatic yet proactive approach to support the cryptocurrency industry. The process involves collaborating with police authorities and banks to introduce unified standards, regulations and best practices that will provide clarity and stability to the industry. This will enable banks to assess and accept crypto customers without restrictions. The development of comprehensive guidelines is expected to pave the way for crypto industry participants to operate without having to worry about access to banking services.



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