• Singapore authorities are working with banks to create new guidance for vetting crypto clients.
• The guidance will cover stablecoins, nonfungible tokens (NFTs), and firms providing services in payments, trading and transfers of these assets.
• Banks would decide whether they want to take on crypto clients based on their risk appetite.

Singapore Working on New Guidance for Crypto Clients

Singapore authorities are currently working with banks and other lenders to set uniform standards for vetting cryptocurrency clients, sources close to the matter told Bloomberg. The central bank and police have been helping banks to work on their vetting process when opening accounts for service providers in the cryptocurrency and digital asset space.

Focus Areas

The initiative is set to cover stablecoin and NFTs as well as transferable gaming or streaming credits. The initiative is set to focus on firms that provide services in payments, trading and transfers of these assets.

Banks‘ Decision

Banks would have the final say in deciding whether to accept cryptocurrency clients based on their risk appetite, the sources added.

Reason Behind Tighter Regulation

The guideline to be issued by Singaporean authorities could be considered a way of tightening regulation in the crypto space following the recent high-class collapses. Last year, numerous crypto companies, including FTX and Terraform Labs, collapsed, resulting in the loss of billions of dollars.

Current Situation

At the moment, the Singaporean government doesn’t stop banks operating in the country to do business with crypto companies.

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