The Monetary Authority of Singapore (MAS) has increased the risk level of Digital Payment Token (DPT) service providers in its latest update to the Counter-Terrorism regulations.
On July 1, the MAS raised the risk level of DPTs from medium to medium as part of its review of the Asian country’s Terrorism Financing National Risk Assessment (NRA) and National Strategy for Combating the Financing of Terrorism.
In addition, the MAS has also identified “cross-border online payments” and “cross-border rapid payment systems” as potential new channels for terrorist financing activities.
It cited the evolving nature of terrorist financing as the reason for the updated assessment and strategy. The watchdog aims to prevent terrorists from abusing Singapore’s status as an international financial, economic and transport hub.
The regulator emphasized the need for vigilance and stated:
“Terrorist actors can exploit Singapore’s economic openness as an international financial, business and transportation hub for terrorist financing purposes. Therefore, constant vigilance is required. Furthermore, as the global terrorism landscape evolves, the risks of terrorist financing in Singapore will also evolve, hence this updated assessment and strategy.”
Singapore’s largest bank takes custody of Paxos stablecoin
In a parallel development, Singapore’s largest bank DBS Group will hold stablecoin assets issued by Paxos Digital Singapore Pte. Ltd, the MAS-licensed subsidiary of Paxos. The lender is decidedly pro-crypto and quietly became one of the largest holders of Ethereum.
Paxos chose DBS as its main banking partner for cash management and stablecoin custody. Evy Theunis, head of digital assets at DBS, explained that the banking giant will help stablecoin issuers meet the robust standards that regulators and customers expect. He said:
“After examining all relevant aspects of managing reserves, stablecoin issuers will find that our solutions will help them meet the robust standards that regulators and customers expect of them.”
Over the past year, Singapore has sought to leverage blockchain technology to improve its status as a global financial center. Consequently, the country is known for its pro-crypto stance and high adoption rate.