The Monetary Authority of Singapore promotes for unification between the conventional banking system and crypto and blockchain companies, to help startups access financial services. According to Ravi Menon, the director general of the regulator, the intention is to support both parties to understand each other and overcome the “obstacles” that have arisen between the two financial worlds.
The executive’s statement comes at a time when companies linked to the crypto and blockchain ecosystems in other countries in the world are encouraging banks to close accounts and apply restrictions on blockchain-based startups, a situation that is also occurring in this South Asian nation.
“What needs to be done is to bring together the banks and the new crypto and blockchain companies to see if there is any understanding that can be reached,” Ravi Menon of the Monetary Authority of Singapore said. “The nature of this business is a little different, so banks may have to employ other ways so that [crypto startups] can be established in good faith. I hope we can join in this and overcome this obstacle,” he added.
Singapore plans to unify banks and crypto and blockchain startups
Although the Monetary Authority of Singapore builds a temporary bridge between companies related to cryptocurrencies, the regulatory agency considers that there are still many areas of the crypto and blockchain ecosystems that are “quite opaque,” so it does not blame banks for not wanting to assist such businesses.
The intermediation that Menon offers for startups is a novelty, since the country also has no plans to issue licenses for the creation of crypto exchange platforms, for example, as has happened in Japan. The Monetary Authority of Singapore new vision resembles the policies adopted by countries like Malta which, last July, became the first nation with comprehensive legislation for cryptocurrencies and blockchain technology startups.
Unlike what may happen in Singapore between banks and crypto and blockchain companies, in other countries of the world, the opposite is happening as banks are continuously closing bank accounts of crypto-related startups.