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Singapore Central Bank wants to bring together ICOs, crypto startups and banks

Singapore Central Bank wants to bring together ICOs, crypto startups and banks

Ravi Menon is the head of Singapore's central bank, which is also the financial market regulator of the city-state. Menon has now announced that it wants to support start-up companies from the crypto sector and crypto exchanges from Singapore. This should be done by giving them access to basic banking services. So far, young companies are having difficulty getting such services in Singapore.

Menon called on the banking industry to provide banking services to domestic startups as well. This is an attempt to strengthen the fintech industry locally. So Singapore wants to create jobs and diversify its economy.

Menon talked to Bloomberg about the banking theme. Menon said that Singapore should not provide a “particularly relaxed regulatory environment” for domestic and foreign crypto companies. He also understands the reservations of the banks, as some projects are quite opaque. Nevertheless, one must stand by the start-up company. Compared to this, the banks were very cautious and did not even want to offer simple banking services, such as the opening of an account. In summary, Menon said about this problem:

“What we're trying to do is bring together the crypto currency fintech start-ups and the banks. We want to see if there is some agreement. “

This inclusive, though cautious approach is in stark contrast to other states, such as India. There, the central bank has forced all regulated financial institutions, including banks, to stop providing services to crypto companies. This setback for the industry has recently even led to the closure of one of the largest Indian crypto exchanges. China is also rigorously opposed to the young industry.

Menon, on the other hand, has in the past excluded regulations for open, decentralized cryptocurrencies, such as bitcoin. He said that Bitcoin itself poses no risk that justifies regulation. He said:

“Our approach is to look at the activity around each cryptocurrency and then assess what regulation is appropriate.”

When the crypto currencies reached their all-time highs in January 2018, Menon recalled the wide range of possible applications. As an example he mentioned cheap international money orders in real time. So he explained earlier this year:

“I hope that when the fever is over and the crash has occurred, the much deeper and more meaningful technology of the cryptocurrencies and the blockchain will not have been harmed.”

The positive environment in Singapore already seems to be bearing fruit. For example, South Korea's largest crypto exchange, Upbit, opened a new crypto exchange in Singapore last month. Binance, the world's largest crypto market by volume, has similar plans. Binance has also announced plans to open a crypto exchange in Singapore. The payment of fiat money should also be possible on this crypto exchange.

Singapore Central Bank wants to bring together ICOs, crypto startups and banks

Sources: Bloomberg, Indian Central Bank Press Release, Bitcoin.com, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/zentralbank-von-singapur-will-icos-krypto-startups-und-banken-zusammenbringen/

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