July 10, 2024
Singapore prioritizes strict AML for crypto licenses
Latest Cryptocurrency News

Singapore Prioritizes Strong AML Controls for Crypto Licensing

The Monetary Authority of Singapore (MAS) has stated that no businesses have met the qualifications for participation in its FinTech Regulatory Sandbox framework concerning cryptocurrency payment services.

In response to criticism voiced in a letter published in the Financial Times, which questioned the Singaporean government’s lack of public consultation and oversight regarding crypto adoption, the MAS clarified that Singapore does not have a specific crypto sandbox. Instead, it has a sandbox that supports a wide range of fintech experimentation.

The letter raised concerns about Singapore permitting crypto companies to access the Fast and Secure Transfers (FAST) interbank payment system. FAST is an electronic funds transfer system that allows customers of participating entities to transfer Singapore dollar funds within the country. However, the MAS clarified that all businesses with valid bank accounts can access the FAST system, including crypto businesses. It emphasized that payments made through FAST are in fiat currencies, not cryptocurrencies.

Furthermore, the regulator asserted that the increase in malware scam cases in Singapore is unrelated to cryptocurrencies. It was argued that such scams are more prevalent in the fiat economy, where fraudsters gain control of customers’ mobile devices and carry out unauthorized transfers through the banking system using fiat currencies.

Singapore is actively combating money laundering and has begun granting operational licenses to crypto businesses that can demonstrate strong anti-money laundering (AML) controls. The MAS indicated that it will progressively implement these measures, making Singapore one of the most rigorously regulated jurisdictions worldwide for retail access to cryptocurrencies.

To address the risks posed by cryptocurrencies to retail customers, the MAS recently sought public input on a set of regulatory measures. It’s worth noting that former MAS Chair Tharman Shanmugaratnam, who has expressed concerns about the volatility and risk associated with crypto assets in the past, has been elected as Singapore’s president.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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