Monetary Authority Of Singapore To Help Crypto Firms Open Bank Accounts

News, Regulation | October 10, 2018 By:

The Monetary Authority of Singapore (MAS), the country’s central bank, is willing to help cryptocurrency startups in receiving domestic banking services.

In an interview with Bloomberg, MAS managing director Ravi Menon said that they are trying to bring the banks and cryptocurrency startups together to see if there is some understanding they can reach.

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

However, Menon said that this approach does not mean that the central bank will loosen its rules to lure more crypto startups to the country. He also said that Singapore has no plans to introduce a licensing system for crypto exchanges similar to the one established in Japan.

According to Menon, the central bank’s main concerns when regulating the crypto and blockchain sector are to ensure consumer protection and prevent money laundering. But there are limits to the areas of the economy the MAS should supervise, he said.

“You and I can invest in lots of very silly and dubious things,” Menon said. “You can’t expect the government or the regulator to regulate all manner of items in which people put their money.”