Singapore banks bans crypto companies accounts

Singapore banks have banned accounts of several companies which work in field of cryptocurrency and payments services
27 September 2017   385

Over the past few weeks, banks in Singapore have closed accounts of about ten cryptocurrency companies. the head of Singapore’s Cryptocurrency and Blockchain Industry Association, or Access, Anson Zeall already called the situation "inexplicable" and asked the country's authorities to intervene in the problem. This is reported by the Blooberg.

From our analysis, it appears to be common among leading FinTech hubs. 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.

Anson Zeall

Chairman, Access

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. 

In particular, the Singapore currency exchange CoinHako announced the closure of its account with DBS Bank.

The closure of our bank account might be due to matters pertaining to anti-money laundering rules and know-your-customer requirements. That’s why we go the extra mile to meet compliance standards set by the MAS.

Yusho Liu
Co-Founder, CoinHako

CoinHako has already notified its customers that it will suspend trading in pairs to the Singapore dollar for several weeks before opening a new bank account.

It is worth noting that the closing of accounts occurred soon after the publication of the MAS warning that digital tokens that differ from digital currencies can be classified as securities. Later, MAS warned clients against investing in ICO, since it considers such transactions risky.

Wyoming Passed Bill Exempting Utility Tokens from Securities Laws

The Wyoming House of Representatives has unanimously approved a bill exempting utility tokens from securities laws  
20 February 2018   82

On Monday, House Bill (HB) 70 passed the House 60 to 0 and will now head to the Senate. The bill exempts utility tokens from securities laws. This will attracts ICO’s launches to the state and will make the state a favorable environment for blockchain startups.

According to the bill, the utility token must meet three conditions:

  1. The token’s issuer must not market it as an investment;

  2. The token must be exchangeable for goods and services, for example, startups must have a working product or service at the time the tokens are issued;

  3. The token’s issuer must not actively make efforts to create a secondary market for the token by entering into a repurchase agreement or agreeing to locate buyers for the token.

It is important to note that there are four more cryptocurrency and blockchain-related bills currently moving through the Wyoming legislature.

HB 19 passed the House of Representatives on Monday and is now awaiting introduction in the Senate. The bill exempts cryptocurrency from the state’s money transmitter act.

HB 101 has passed its second reading in the House and, if it passes its final hearing, will then go to the Senate. This bill will allow companies to create and use blockchains for the purpose of storing records and conducting inter-office communication.

HB 126 has just passed its second reading in the House. It will allow the creation of series LLCs.

Senate File (SF) 111 passed a vote to introduce on Friday and is now headed to a committee hearing. This bill will exempt cryptocurrency assets from state property taxes.