- The Monetary Authority of Singapore (MAS) has raised the risk level for cryptocurrency trading platforms from medium low to medium high.
- According to Singapore’s latest Anti-Money Laundering National Risk Assessment, DPT service providers have serious risks and vulnerabilities in AML.
OUR TAKE
MAS has been actively involved in the regulation of the digital asset market. A few months ago, Singapore regulators expand the scope of regulated payment services to include digital token service providers, bringing digital assets under user protection laws.
–Zora Lin, BTW reporter
What happened
Following an update to Singapore’s Combating the Financing of Terrorism Act (CFT), the Monetary Authority of Singapore (MAS) has raised the risk level for cryptocurrency trading platforms from medium low to medium high. The update aims to prevent terrorist organisations and groups from taking advantage of Singapore’s economic openness as an international financial, business and transport hub for terrorist purposes.
The risk level for cryptocurrency trading platforms, known as Digital payment token (DPT) service providers, has risen to medium-high, with cross-border online payments remaining at high risk as they have been identified as potential new channels for terrorist financing activities.
According to Singapore’s latest Anti-Money Laundering National Risk Assessment, DPT service providers have serious risks and vulnerabilities in anti-money laundering.
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Why it’s important
Singapore’s increased risk factor for cryptocurrency exchanges may affect their reputation and credibility in the international financial system, while also potentially affecting the considerations of digital asset businesses when choosing a location.
But at the same time, MAS’s actions show the strengthening of regulation of the digital asset market, indicating that MAS is highly vigilant about the potential risks in this emerging market, reflecting Singapore’s international commitment and efforts on counter-terrorism and anti-money laundering issues.
These measures show that Singapore, as an international financial centre, is actively responding to and managing new challenges in the digital asset market to ensure the healthy development of the market and guard against potential financial crime risks.
