Singapore’s Central Bank Will Aid Crypto Startups in Opening Bank Accounts

Singapore’s Central Bank Will Aid Crypto Startups in Opening Bank Accounts
Oct 10, 2018 03:17 PM By: Ben Noble | 5354 Views

Ravi Menon, the chief of Singapore’s defacto central bank and regulator, has supported domestic cryptocurrency startups and exchanges to obtain banking assistance in the technology-forward city-state.

MAS (Monetary Institute of Singapore) managing director Ravi Menon has called for the banking industry to get above the “hurdle” of offering services to residential cryptocurrency startups in a marked attempt to foster the fintech industry.

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Speaking to Bloomberg, Menon told that while Singapore will not be “a remarkably lax regulatory environment” for crypto industry firms regionally and beyond, there could be a suspension coming for startups who have banks reluctant to offer secure banking services like opening banking accounts.

The central bank official said:

What we are attempting to do is to bring the banks and cryptocurrency fintech startups collectively to see if there is some understanding they can reach.

The embracive, if careful, the approach is a significant contrast to the likes of India, wherein the central bank ordered all regulated financial institutions – including banks – to discontinue offering services to cryptocurrency firms. The Indian central bank’s move has frequently dented the industry, pointing to the closure of one of India’s biggest cryptocurrency exchanges recently.

For a senior central bank official, Menon has directed out regulation for decentralized, open cryptocurrencies like bitcoin in the past, asserting that bitcoin “itself does not posture the risk that warrants regulation.”

“We plan to look at the activity about the cryptocurrency and then make an assessment of what regulation would be proper,” he stated last year, calling for oversight into activities that could damage cryptocurrencies.

As cryptocurrency markets touched an all-time high earlier in January, driven by a bull-run through much of 2017, Menon sought to bring awareness to the “good applications” of cryptocurrencies calling cheap, real-time, international remittance as an example.

“I do hope when the fever has gone continuously when the crash has happened, it will not ruin the much deeper, and more meaningful technology associated with digital currencies and blockchain,”

Menon stated earlier this year.

The approved ecosystem had seen Upbit, South Korea’s largest cryptocurrency exchange, build a new cryptocurrency exchange in Singapore last month. Binance, the world’s largest cryptocurrency exchange by trading volume, also published plans to launch a fiat cryptocurrency exchange in Singapore.

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