A Report by CYS Global Remit Legal & Compliance Office
In a significant move to bolster its position as a leading international finance, business, and transport hub, Singapore's regulator has updated the Terrorism Financing National Risk Assessment (NRA) and National Strategy for Countering the Financing of Terrorism. These updates aim to prevent terrorist groups from exploiting the country’s strong infrastructure.
Elevated Risk Levels for Digital Payment Token Service Providers
Key among the updates is the raised risk level for crypto exchange platforms, or digital payment token (DPT) service providers, which has increased from medium-low to medium-high. This change comes after a thorough report identified digital payment tokens as high-risk for terrorist financing, with cross-border online payments remaining a high-risk channel for such activities.
Enhanced Regulations for Digital Assets
The Monetary Authority of Singapore (MAS) continues to be proactive in regulating the digital asset market. The updated regulations now cover a wider range of payment services, including digital token providers, who must adhere to stringent user protection laws. These laws enable MAS to enforce stricter Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) requirements. Additionally, DPT service providers, authorized to offer custodial and crypto transfer services within Singapore, must now implement enhanced measures for user protection and financial stability.
Singapore’s Commitment to Crypto
Despite these stringent measures, Singapore remains a pro-crypto nation with a high crypto adoption rate of 11.2%, far exceeding the global average of 4.2%. Under Singapore's regulations, digital currencies are classified as digital payment tokens, showcasing the country’s progressive stance on digital assets.
Conclusion
Singapore's regulatory updates highlight its dedication to maintaining a secure and robust financial environment while embracing digital innovation. At CYS Global Remit, we fully support these efforts by providing secure and compliant cross-border payment services, ensuring that funds are transferred safely and efficiently. Together, we contribute to a safer and more prosperous global financial ecosystem.
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