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Singapore supports Crypto Startups in Opening Bank Accounts

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Singapore has been on their way to develop its financial technology sector to provide ways of creating jobs and creating diversity in the economy.

The Central Bank of Singapore has announced that they are willing to assist cryptocurrency firms in problems that have proven to be a nuisance to said firms. They were unable to open a bank account and existing ones would be closed down.

While Cryptocurrencies like Bitcoins come with a number of risks associated with fraud and potential financial bankruptcy because it is not regulated, Ravi Menon, Managing Director of the Monetary Authority of Singapore, has stated that the blame does not lie with the banks for taking precautions or outright closing down the bank accounts, as money laundering and financial crime are also a common occurrence in the world of cryptocash.

Last year, the MAS published a “Guide to Digital Token Offerings” where details concerning the regulatory framework were explained on which the issuance of digital assets is based without any legal voids or contradiction. This, in turn, shows how the MAS is focused on understanding the purpose of cryptocurrency, and then be able to effectively implement the use of crypto in Singapore.

Singapore has established a rule where cryptocurrency will then be divided into three categories:

The first in the category will be deemed as the utility tokens where its purpose is limited to making a payment for computing services.

The second will include digital tokens that show characteristics of the security, governed by the Securities and Futures Act.

And the third category will involve “high risk” digital tokens which are prone to huge price swings such as the Bitcoin.

While everyone can invest in anything, the government is unable to regulate everything where people put their money in.