Bitcoin Businesses Face Bank Account Closures in Singapore

Banks in Singapore have closed the accounts of a number of cryptocurrency firms without expanation, according to a news report.

AccessTimeIconSep 26, 2017 at 1:00 p.m. UTC
Updated Sep 13, 2021 at 6:58 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Banks in Singapore are reportedly moving to close accounts tied to a number of cryptocurrency firms.

According to a report by Bloomberg today, as many as 10 companies have reported issues in recent weeks. Anson Zeall, head of Singapore's cryptocurrency and blockchain industry association, ACCESS, supported the claim, stating the closures remain unexplained by the banks. Further, he urged the country's authorities to take a stance on the matter.

"We would urge Singapore to take a leadership role and demonstrate how to come to an effective resolution among all parties," Zeall said.

However, any support may not be forthcoming.

The Monetary Authority of Singapore (MAS), the country's central bank, told Bloomberg that it doesn't interfere with commercial decisions taken by individual banks. The central bank added it was the responsibility of the banks in question to establish operational protocols to ensure they comply with fraud protection and customer due-diligence laws.

CoinHako, a Singapore-based cryptocurrency provider announced the closure of its DBS Bank account in a blog post.

While it did not state a reason for the bank's decision, it said: "Regulations and the exact role of the blockchain in society continues to present as a grey area to everyone."

The exchange told customers it will not be able to process Singapore dollar deposits and withdrawals until a new bank account can be opened – a process it expects to take several weeks.

The account closures come soon after the MAS issued a release stating that digital tokens, distinguished from cryptocurrencies, may be classified as securities. The release was followed by another statement which warned customers about the risks of investing in initial coin offerings (ICOs).

The central bank has, however, shown enthusiasm for digital currency technology in other areas, completing a distributed ledger trial focused on inter-bank payments back in March.

Singapore image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.