Singapore is gradually developing into a cryptocurrency hub as firms have now joined to establish a code of practice in the industry. In a recent development, Luno, a cryptocurrency exchange that halted its operations in Singapore is all set to resume operations post two banks have opened accounts for the firm.
Luno Spreads Wings in Europe & Africa
The latter moved headquarters to London in 2017. It will start its digital wallet and trading services using Singapore dollars in a month. The provision of two bank accounts will allow the firm to pay salaries and hold money raised from investors. The name of the banks continues to be in close wraps. U.K Financial Conduct Authority in 2016 accepted the latter into its regulatory sandbox. Since then, Luno has been fast expanding in Europe and Africa.
Still, Luno’s existing Singapore bank accounts don’t allow it to hold money for clients, the biggest impediment for a crypto-exchange operator to thrive,
said Goh, who joined the firm in 2018 after almost an eight-year heist at the Monetary Authority of Singapore.
She further added,
“It’s a good start, but there’s more work to be done. The bank situation shall be resolved soon because that is core and fundamental to getting crypto exchanges and their business up and running.”
Firms Join Hands Together To Promote Code of Practice in Industry
Presently, the exchange relies on a stored-value facility to handle its clients in the absence of banking services. Firms associated with cryptocurrencies in Singapore are earnestly working to convince banks and regulators. Furthermore, the association of cryptocurrency enterprises and startups Singapore is working on an initiative to promote a code of practice in the industry.