Singapore is working on new guidelines for banks and other lenders to standardize the vetting process for cryptocurrency clients. The guidelines are set to cover stablecoins, non-fungible tokens (NFTs), and firms that provide services in payments, trading, and transfers of these assets. Banks will be free to determine their risk appetite and decide whether to take up crypto clients. Sources, who spoke anonymously as the discussion hasn’t gone public yet, said that the Monetary Authority of Singapore has been working with banks for about six months to improve their vetting procedures. Banks will be required to conduct due diligence measures to manage customer risks as they do with other customers. Singapore’s move to issue new guidance for banks could be seen as an approach to tighten regulations in the crypto space following some of the recent high-profile collapses of crypto companies.
