Singapore Cryptocurrency Firms Facing Bank Account Closures

[alyssa85]

https://www.bloomberg.com/news/articles/2017-09-26/singapore-cryptocurrency-firms-facing-bank-account-closures

Singapore banks have closed accounts of several companies which specialize in providing cryptocurrency and payments services, according to two local bodies which represent financial-technology firms.

Noting that cryptocurrency firms have had similar problems with their banks in other countries, the head of Singapore’s Cryptocurrency and Blockchain Industry Association, or Access, asked the government to step in.

“From our analysis, it appears to be common among leading FinTech hubs,” Access Chairman Anson Zeall said in an emailed statement. “If this is the case, we would urge Singapore to take a leadership role and demonstrate how to come to an effective resolution among all parties.”

Zeall said his organization had heard from 10 companies which had encountered problems with their banking relationships in Singapore. The banks didn’t give a reason for their action, Zeall added.

The Monetary Authority of Singapore, the country’s central bank, said in a statement that it doesn’t interfere with commercial decisions taken by banks “including those in relation to the establishment and termination of business relationships.” Banks are expected to establish suitable procedures and controls, including those governing customer transactions and relationships, and to comply with customer due diligence requirements of MAS rules on preventing money laundering and the financing of terrorism, the statement added.

Chia Hock Lai, president of the Singapore Fintech Association, which has broader membership than Access, said some of his organization’s members also experienced account closures, though he didn’t provide figures.

Neither organization named the banks which had closed their member firms’ accounts, but Access said the action had been taken by a “range of financial institutions.” Access has 106 members and the Fintech Association has 185, though the two organizations said some companies belong to both groups.

[budi691]

What Singapore is doing now, I think is also affected by what has been done by Indonesia (As the largest country in ASEAN). They could communicate with each other for the economic good in ASEAN. 

[alyssa85]

Won't be possible when your bank account is on your celly

https://www.sirinlabs.com/

That's a long way off, and in the meanwhile fintech firms need a bank account so they can interface with merchants and other users.

I think the lesson from this is that businesses need more than one bank account in more than one country, so that they can continue to function if any one bank plays dirty.

[TahuDiniHari]

What Singapore is doing now, I think is also affected by what has been done by Indonesia (As the largest country in ASEAN). They could communicate with each other for the economic good in ASEAN. 

That's a good predictor, I also do not understand why developed countries such as Singapore can limit the movement of Bitcoin.

[ivrynx]

I think singapore is tryig to play it safe, singapore, though it is developed, still is a small country, i think what they are trying to do, is first prioritze their businesses, since.singapore doesn't have that much in resources, it makes up for the money it generates. Also, i think thr banks, will be doing this,.since their business will be ruined, they know that financing cryptocurrency firms is like digging its own grave, since they are financing something that can replace their fiat and make it obsolete, banks will surely be threatened, hopefully thrir government will do something, and both parties will be in favor, since having cryptocurrency firms in their country would benefit them, just think of the electricity bill they'll have to pay, the government will surely.be happy. I hope there.would be an update regarding this soon, since this is like a trend that china had started.

[kenkoy]

Business is business. I smell something fishy about this. Does bank fear these cryptocurrency companies to take over so they are doing their part to shut it down? I think this has happened not only on Singapore but to other countries as well who fear Bitcoin will take over the market. Of course, the government will not interfere with the bank's action but we can sense that there are connections with Billionaire owners to Govt.

[Iranus]

Won't be possible when your bank account is on your celly

<spam link>

Pretty ironic how their website has the word "secure" cut partially off the screen.  Pretty rampant and obvious spamming there.
Considering that crypto is a pretty new thing for banks, it might be easy for them to just close accounts rather than find out exact details of what the companies and groups are doing within the blockchain space.

Over time they'll either mature to the idea and start treated blockchain companies normally or they'll decide that it's a massive threat.  Right now we seem to be in some weird transition phase that could go either way.

[Hydrogen]

Banks have a history of closing accounts of small business owners & independent businesses.

Chase closing accounts of porn stars: Report

Chase Bank is closing the accounts of hundreds of people who work in the adult industry, according to multiple reports

Celebrity blogger Perez Hilton posted images of the letters reportedly sent to stars in the adult industry informing them of the account closings. Hilton reported that the accounts would be closed on May 11, 2014.

https://www.cnbc.com/2014/04/26/chase-closing-accounts-of-porn-stars-report.html

There are other cases of banks targeting groups of people from having accounts pornstars & workers in the adult entertainment industry are for whatever reason the most public and obvious case. In the united states the tea party was targeted by the IRS for their political views which could imply that large scale targeting against certain stances and belief systems could become a norm.

The banking industry being centralized gives banks the power to isolate groups of people from their payment system which they are pushing to become a sole proprietor of transactions under a cashless society.

I hope people recognize the danger of this and support paper fiat money to prevent banks from having a monopoly over electronic transactions.