The Monetary Authority of Singapore (MAS), the city-state’s central bank, is working to ensure cryptocurrency startups receive domestic banking services as part of the country’s efforts to boost fintech development but doesn’t plan to loosen its rules to lure more crypto startups to the country.
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.”
Menon added that a major issue currently facing Singapore-based crypto startups is that traditional banks are reluctant to open bank accounts because some aspects of the industry could appear “obscure and dangerous” to both regulators and financial institutions.
The central bank, he said, currently has no intention to employ a licensing scheme for crypto exchanges as its Japanese counterpart has done – assigning licenses to 16 Japanese exchanges so far, in part, to help them obtain banking support.
Singapore has been pushing to develop its financial technology sector as a way of creating jobs and diversifying the economy while taking a cautious approach to exchanges and other aspects of the cryptocurrency industry.