The Monetary Authority of Singapore (MAS) has raised the risk level of digital payment token (DPT) service providers in its latest counter-terrorism regulatory update.
On 1 July, MAS elevate The DPT risk level was upgraded from medium-low to medium-high in the Asian country’s National Terrorism Financing Risk Assessment (NRA) and National Strategy to Combat Terrorist Financing.
Furthermore, MAS also identified “cross-border online payments” and “cross-border instant payment systems” as potential new channels for terrorist financing activities.
They cited the increasingly serious nature of terrorist financing as the reason for the review and update of the strategy. The watchdog aims to prevent terrorists from exploiting Singapore’s position as an international financial, economic and transport hub.
The regulator stressed the need for vigilance, stating:
“Terrorists may exploit Singapore’s economic openness as an international financial, business and transport hub for terrorist financing purposes. Therefore, constant vigilance is required. Furthermore, as the global terrorist landscape evolves, Singapore’s terrorist financing risk will also increase, hence this new assessment and strategy.”
Singapore’s largest bank custody stablecoin Paxos
In a parallel development, Singapore’s largest bank, DBS Group, will take custody of stablecoin assets issued by Paxos Digital Singapore Pte. Ltd, a MAS-licensed subsidiary of Paxos. The lender has decided to back the cryptocurrency and has quietly become one of the largest holders of ETH.
Paxos has selected DBS as its primary banking partner for stablecoin custody and cash management. Evy Theunis, head of digital assets at DBS, explained that the banking giant will help stablecoin issuers meet the high standards expected by regulators and customers. speak:
“After considering all aspects related to reserve asset management, stablecoin issuers will find that our solution helps them meet the high standards that regulators and customers expect of them.”
Over the past year, Singapore has sought to leverage blockchain technology to enhance its position as a global financial hub. As a result, the country is known for its pro-cryptocurrency stance and high adoption rates.
Minh Anh
According to CryptoSlate
