Singapore regulator will facilitate dialogue between crypto companies and banks

The Monetary Authority of Singapore is ready to help cryptocurrency companies that are having difficulty opening a bank account. Despite this, the financial regulator noted that it is not going to weaken existing laws in order to attract new firms.

According to Bloomberg, the Singapore government is encouraging the development of the financial sector, but is still wary of cryptocurrency companies and exchanges. Currently, many cryptocurrency firms in the country complain that the lack of a clear regulatory framework prevents them from opening accounts with local banks.

Ravi Menon, managing director of the monetary authority, said:

We should not try to create an overly liberal regulatory environment in order to attract new businesses. Instead, we are trying to build collaboration and understanding between fintech startups and banks. 

Menon, however, supported the cautious attitude of local banks towards such enterprises. He said banks simply need to be cautious due to the volatility of the cryptocurrency market. The managing director also indicated that the financial regulator is trying to protect investors and prevent cases of money laundering.

Despite its strict regulatory framework, Singapore is often seen as an ideal location for cryptocurrency startups. The Asian country is one of the three best platforms for conducting ICOs, with the United States in first place and Switzerland in second. The largest Japanese messaging platform, Line Corporation, has opened a crypto exchange in Singapore. In addition, Bitbox has also opened its own exchange in this country, and cryptocurrency giant Binance recently announced that the launch of its exchanger in Singapore will take place on October 18.

According to ethereumworldnews.com