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Singapore authorities are working with banks to formulate vetting for potential crypto clients.
Both Singapore's central bank and police force have been aiding banks with their screening approach when opening new accounts.
Stablecoins, NFTs and gaming credits are also covered in the project, which focuses on firms providing services in payments, trading and transfers of digital assets. Banks will then determine whether to accept the clients based on their risk appetite.
Read more: We Passed Elevandi's Digital Assets Knowledge Certificate But It Wasn't Easy
The initiative has been in the works for six month, with a report involving due diligence practices and risk management expected to be published in the next two months.
Whilst MAS has retained a reserved approach towards crypto, banks are not prohibited from dealing with crypto firms.
“Banks make their own determination of whether to start or continue a banking relationship with a customer, balancing between commercial considerations and business risk tolerance,” MAS said.
Singaporeans are still actively investing in digital assets, according to the 2023 Independent Reserve Cryptocurrency Index.
The annual survey of around 1,500 Singapore residents was conducted in partnership with Toluna, an independent consumer insights provider. The city-state scored 55 out of 100, down from last year's score of 61, with the dip in confidence attributed to the difficult year the industry had in 2022.
Read more: Despite a Dip in Confidence, Singaporeans Continue to Invest in Cryptocurrency
However, 44% of Singaporeans hold at least 10% of their portfolio in crypto, and 46% invest up to $1,000 per month in digital assets, the cryptocurrency exchange said.
MAS remains cautious
Digital assets are unavoidable in today's markets, and MAS is navigating through the crypto storm.
Most recently, Setia Law was launched in Singapore, with a team of experienced lawyers to focus on complex cross-border cases, particularly in the areas of dispute resolution, financial crimes, and corporate distress situations.
Read more: Setia Law Launches in Singapore to Tackle Complex Crypto Disputes
The firm said its team of experienced lawyers will focus on complex cross-border cases, drawing on their deep experience in complex financial disputes, commercial fraud, international enforcement, and corporate distress situations.
It will be one of the few law firms in Singapore with a market-leading team known for its work in complex cryptocurrency disputes.
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