Cryptocurrency fracas spotlights risks in opaque space
Add BT as a preferred sourceNEWS this month that at least one cryptocurrency firm has had its Singapore banking account closed has led to whispers that Singapore is unilaterally shutting its doors to cryptocurrency companies.
What the discussion fails to acknowledge is the reality that cryptocurrency firms bear an obvious risk in creating illicit channels for money laundering and terrorism funding, and that in the post-crisis period, the burden of reviewing any suspicious channels is carried with extra caution by financial institutions today.
To recap, Bloomberg first reported that CoinHako, a local cryptocurrency-related firm, said its bank accounts had been shut by DBS, with the start-up telling Bloomberg that it suspects the account closure had to do with anti-money laundering rules, and know-your customer (KYC) requirements. It said it has "gone the extra mile" to meet KYC requirements, though no details were reported.
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