The update is intended to prevent terrorist groups from exploiting Singapore’s financial openness.
The Monetary Authority of Singapore (MAS) has raised the risk level for crypto exchange platforms from medium-low to medium-high in an update to the country’s Terrorism Financing laws.
Singapore Increases Risk Level for Crypto Exchanges
On July 1, Singapore’s regulatory authority updated its Terrorism Financing National Risk Assessment (NRA) and National Strategy for Countering the Financing of Terrorism (CFT).
The update is designed to prevent terrorist groups from taking advantage of Singapore’s position as a major international financial, business, and transport hub for their financing needs.
With the new update, crypto exchange platforms, referred to as Digital Payment Token (DPT) service providers, have been classified as medium-high risk. Cross-border online payments continue to be seen as high risk, due to their potential for misuse in terrorism financing.
This increase in risk level for crypto platforms follows a recent report that highlighted digital payment tokens as high-risk. Singapore’s updated Money Laundering National Risk Assessment (MLNRA) points out that DPT service providers face significant risks and vulnerabilities in terms of anti-money laundering (AML).
Summary Review: Singapore’s Monetary Authority has upgraded the risk classification for crypto exchange platforms to medium-high in response to concerns about terrorism financing. This change reflects Singapore’s commitment to safeguarding its financial ecosystem from potential misuse. The update, which comes after a recent report flagged digital payment tokens as high-risk, aims to enhance the country’s counter-terrorism financing measures and mitigate the risks associated with digital currencies.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
