The update aims to prevent terrorist groups and organizations from exploiting Singapore’s economic openness as an international financial, business and transport hub.
The Monetary Authority of Singapore (MAS) has increased the risk level for crypto exchange platforms from medium-low to medium-high under an update to the country’s laws on Countering the Financing of Terrorism (CFT).
Singapore put crypto exchange platforms under high risk
On July 1, the Singaporean regulator issued an update to the country’s Terrorism Financing National Risk Assessment (NRA) and National Strategy for Countering the Financing of Terrorism.
The update aims to prevent terrorist groups and organizations from exploiting Singapore’s economic openness as an international financial, business and transport hub for terrorist financing purposes.
Under the new update, crypto exchange platforms, or digital payment token (DPT) service providers, have been elevated from medium-low to medium-high risk. Cross-border online payments remain at high risk, as they are identified as a potential new channel for terroist financing activities.
The latest challenge for crypto platforms comes weeks after a report flagged digital payment tokens as high-risk. According to Singapore’s updated Money Laundering National Risk Assessment (MLNRA), DPT service providers represent serious risks and vulnerabilities in the context of Anti-Money Laundering (AML).
Singapore leads crypto regulations
The MAS has been actively involved in regulating the digital asset market. The latest concerning crypto platforms comes a couple of months after the Singapore regulator expanded the scope of regulated payment services to include digital token services providers, putting digital assets under the user protection law.
The law allows the MAS to impose stricter requirements on DPT service providers regarding AML and CFT, user protection and financial stability.
It also helped DPTs provide custodial services and crypto transfer services in the country.
Singapore is considered a pro-crypto nation with a high crypto adoption rate. While the global crypto ownership rate is around 4.2%, Singapore boasts an adoption rate of 11.2%. Under Singapore regulations, digital currencies are known as digital payment tokens.
The MAS has acknowledged Bitcoin
BTC
$59,980
and Ether
ETH
$3,194
as cryptocurrencies, giving them legal status in Singapore.
Source:- COINTELEGRAPH
