Singapore Open Up To Digital Banking

cryptowarrior88 (59)in #cryptocurrency • 5 years ago

The acting central bank of Singapore, the Monetary Authority of Singapore (MAS) is opening its doors to digital banks after the Hong Kong government offered digital banking licenses to Alibaba, Tencent, and Xiaomi.

Firms who want to set up a digital bank in Singapore have until December 31st to do so and will be accepting only five applications, two for full digital banks and three wholesale digital banks.

MAS has set several criteria for a banking license: Paid-up capital of S$15 Million and should reach $1.5 billion within three to five years; deposits cap of S$50 Million and per customer deposit cap of S$75,000; at least one entity that holds a 20% stake in the applying entity to have 3 years experience running a technology or e-commerce business and a five year financial projects.

MAS revealed that applications that show a consistent loss-making pattern will not be provided their digital banking license, which also seems to be leaning towards technology companies and e-commerce companies.

There have been several technology and e-commerce firms already expressed interest to apply such as Ping-An for China, and Grab from Indonesia which if approved will be the first ridesharing business that would be a digital bank.