Singapore: Regulator Plans to Smooth Over Banking Ties With Crypto Businesses

The head of Singapore’s financial regulator and de facto central bank said he wants to “bring together” banks and crypto businesses after complaints about banking support, Bloomberg reports Wednesday, Oct. 10.

Speaking in an interview, Monetary Authority of Singapore (MAS) managing director Ravi Menon appeared to consider the creation of a balanced regulatory environment for incoming crypto entities.

“What we are trying to do is to bring the banks and cryptocurrency fintech startups together to see if there is some understanding they can reach,” he told the publication, adding:

“The nature of this business is a bit different, so banks may need to employ other ways in which they can establish bona fide. I hope we can bring minds together on this so that we can get over this hurdle.”

Singapore has made a name for itself in recent years as a broadly welcoming jurisdiction regarding disruptive fintech, with Menon publicly showing support for the promise of both cryptocurrency and blockchain technology.

At the same time, he remains prudent about the emerging sector, noting to Bloomberg that from a bank’s perspective, he still “would not blame” executives for continuing to refuse to service crypto clients.

“Some of these activities are indeed quite opaque,” he added.

Last year, reports emerged of extant cryptocurrency entities in Singapore suddenly having their bank accounts closed by local lenders.

Nevertheless, Singapore’s position continues to differ markedly from official stance in countries such as India, where a blanket ban on banks dealing with crypto businesses continues.

After a raft of complaints, the country’s supreme court is now soon due to deliver a verdict on the ban’s legal legitimacy.