Singapore authorities are planning to support crypto startups with receiving banking services

The Monetary Authority of Singapore (MAS), also known as the city-state's central bank, is currently working on the new approach to provide cryptocurrency startups with internal banking services.

The above-mentioned development is part of the country's efforts to boost its fintech development sector. Based on the statement of Ravi Menon, MAS managing director, the government of Singapore is currently trying to “bring the banks and cryptocurrency fintech companies together”. The institution’s director mentioned that this approach does not mean that the MAS will reduce regulatory requirements in order to attract crypto startups.

The nature of crypto business is slightly different from the classic types of businesses, so many banks might need to apply new methods, so they would be able to determine the legitimate nature of crypto startups.

Menon stated that a serious problem that local-based crypto companies are facing these days is that traditional banks are indisposed to open bank accounts, due to some "unclear and dangerous" aspects of this modern industry.

He also said:

"I hope we can bring minds together on this so that we can get over this hurdle."

As was stated in MAS report the central bank, at this moment has no object to employ a licensing mechanism for crypto exchanges, unlike its Japanese counterpart has done – granting licenses to 16 Japanese exchanges in order to help them obtain banking services.

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