The financial watchdog of Singapore is going to bridge the gap which is between crypto firms and banks, with helping the digital currency firms to set up local bank accounts.
Bringing the division between crypto and financial institutions
The Monetary Authority of Singapore is now willing to help virtual currency firms which have some difficulties with opening bank accounts. However, the financial regulatory body has stated that it would not slacken its rules to entice some other digital currency startups to Singapore.
As it was reported by Bloomberg, the Asian country tried to take a few steps in order to upgrade its financial sector to provide jobs and expand its company. However, the government is treading carefully in dealing with virtual currency exchanges, as well as firms. Crypto firms which are in the country lament on the absence of regulatory framework which hampers them from opening local bank accounts.
Commenting about the glitch which was encountered by digital currency firms, the managing director of the Monetary Authority of Singapore, named Ravi Menon, said that they should not be trying to create an extremely lax regulatory environment to attract that kind of business. What they are trying to do is to bring the banks and crypto fintech startups together, in order to see if there is some understanding they can reach.
All the parties would work to settle the problem
He further explained that because of the nature of cryptocurrencies, banks would need some methods to establish some form of authenticity. Also, the managing director said that all the parties concerned would work to try to settle the problem.
However, Menon justified the attitude of the local banks, saying that they have to apply caution as of the obscurity which is associated with cryptos. He also added that the regulatory body is concerned with the protecting investors and preventing money laundering when it is dealing with the crypto industry.
Despite the regulatory framework of its firm, Singapore is usually seen as a haven for a few digital currency startups. This Asian country is among the top three most massive ICO launch pads behind U.S. and Switzerland.
Singapore strives to be at the forefront of crypto activities
The biggest messaging platform in Japan, which is known as Line Corporation, has established its crypto exchange services in Singapore too. The digital currency exchange platform of the company, known as Bitbox, launched in Singapore in July this year.
Also, the leading digital currency trading platform of Singapore, known as Tokenize Xchange, held its ICO in July. The trading platform has promised to make accessibility to virtual currency tokens easy.
Binance, which is behemoth crypto exchange, also announced its entrance into Singapore. The company has further explained that a fiat-crypto exchange is going to be optional in Singapore on the 18th of September.
The Asian country also strives to be at the forefront of crypto activities. In recent times, Crypto.com, which is a Hong Kong-based blockchain startup, has announced the introduction of the first cryptocurrency Visa prepaid card of Asia, starting with Singapore. Moreover, the country expressed its wish to be the first country to accept virtual currency and DLTs entirely.