According to two local bodies which represent in financial technology firms. Particularly, the companies which were providing payments and cryptocurrency services closed their accounts by Singapore banks.
The head of Singapore’s Cryptocurrency and Blockchain Industry Association asked government to step in as firms were facing problems with their banks.
Anson Zeall, Association Chairman says,
“From our analysis, it appears to be common among leading FinTech hubs. If this is the case, we would urge Singapore to take a leadership role and demonstrate how to come to an effective resolution among all parties”.
Zeall came across 10 companies which had undergone the same problems with their banks in Singapore. He added, but dint give any reason for their action.
The complaints are all about the difficulties faced by cryptocurrency firms while the sector is under growing scrutiny globally.
The country’s central bank, the Monetary Authority of Singapore, says that it doesn’t interfere with commercial decisions taken by banks. It “includes those in relation to the establishment and termination of business relationships”. Banks are expects to establish suitable procedures and controls.
The Singapore Fintech Association President, Chia Hock Lai, says several members of his organization also experienced account closures though he didn’t provide figures.
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A spokeswoman for Oversea-Chinese Banking Corp., says the bank reviews customer accounts for risk management purposes “and may close these accounts for various reasons”. United Overseas Bank ltd., the third of the large Singapore banks deteriorated to comment.
Monetary Authority of Singapore (MAS)
The MAS will be regulating the offer or issues of digital tokens. However, if they constitute products regulated under the Securities and Futures Act. Since, it doesn’t regulate virtual currencies.
The MAS says,
“remains committed to developing Singapore as a reputable financial center and fintech hub.” That requires “pairing a progressive and nurturing environment for fintech’s together with strong controls to mitigate risks such as fraud and money laundering”.
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Image Source: Monetary Authority of Singapore