In a recent update to its Counter-Terrorism regulation, the Monetary Authority of Singapore (MAS) has increased the risk level of Digital Payment Token (DPT) service providers. The MAS announced on July 1 that the risk level of DPTs has been raised from medium-low to medium-high. This decision was made as part of the MAS’s review of Singapore’s Terrorism Financing National Risk Assessment (NRA) and National Strategy for Countering the Financing of Terrorism.
The MAS has identified “cross-border online payments” and “cross-border fast payment systems” as potential new channels for terrorist funding activities. The evolving nature of terrorism financing was cited as the primary reason for the updated assessment and strategy. The MAS is taking a proactive approach to prevent terrorists from exploiting Singapore’s status as an international financial, economic, and transport hub. The regulator emphasized the importance of remaining vigilant in the face of such risks.
Collaboration with DBS Group
In a separate development, DBS Group, Singapore’s largest bank, announced that it will be providing custody services for stablecoin assets issued by Paxos Digital Singapore Pte. Ltd. This MAS-licensed subsidiary of Paxos has chosen DBS as its primary banking partner for cash management and stablecoin custody. DBS has been a staunch supporter of cryptocurrencies and has quietly become one of the largest holders of Ethereum. Evy Theunis, head of digital assets at DBS, highlighted the importance of ensuring that stablecoin issuers meet the stringent standards expected by regulators and customers.
Singapore has been actively embracing blockchain technology to solidify its position as a global financial hub. With a favorable stance on cryptocurrencies and a high adoption rate, Singapore is paving the way for innovation in the financial sector. The country’s commitment to staying ahead of the curve in the ever-evolving landscape of digital payments and blockchain technologies is evident in its progressive approach to regulation and partnerships with industry leaders.
Overall, the MAS’s decision to raise the risk level for DPT service providers reflects the organization’s commitment to addressing emerging threats in the financial sector. By staying vigilant and adapting to new challenges, Singapore aims to maintain its reputation as a secure and forward-thinking financial hub. Through collaborations with industry players like DBS Group, the MAS is positioning itself as a leader in promoting innovation and compliance in the fast-paced world of digital payments and blockchain technology.
