In the latest stride against money laundering, Singapore has granted operational licenses to cryptocurrency enterprises demonstrating robust Anti-Money Laundering (AML) controls. The move signifies the MAS’s unwavering commitment to maintaining the highest standards of financial integrity.
Contrary to recent criticisms, MAS asserted that businesses still need to meet the criteria for participation in its FinTech Regulatory Sandbox as cryptocurrency payment providers. Addressing concerns raised in a letter published by the Financial Times, the MAS clarified that Singapore does not possess a dedicated “crypto sandbox.” Instead, the nation boasts a versatile sandbox supporting various fintech innovations.
As per the recent report, the letter chastised Singapore for its purportedly unwise decision to grant crypto companies access to the Fast and Secure Transfers (FAST) interbank payment system. This electronic funds transfer system facilitates seamless dollar transactions between participating entities.
Singapore’s Inclusive Crypto Regulation
MAS stood firm, asserting that any entity equipped with a legitimate banking infrastructure can harness the power of the FAST system, extending this privilege to crypto enterprises. Their resolute position emphasizes inclusivity within the financial landscape, reinforcing accessibility for all sectors, including the burgeoning crypto realm. The regulator underscored, “Payments through FAST are in fiat currencies, not cryptocurrencies.”
The MAS unequivocally refuted a correlation between rising malware scams in Singapore and the cryptocurrency sector. They argued that such scams are more prevalent in the fiat economy, asserting that cryptocurrencies aren’t inherently more susceptible to fraud than traditional financial systems.
“These scams entail fraudsters taking control of customers’ mobile devices and effecting unauthorized transfers through the banking system in fiat currencies.”
The MAS has been actively engaging the public in soliciting feedback on comprehensive regulatory measures designed to mitigate potential risks posed by cryptocurrencies to retail customers. This demonstrates a proactive approach to ensuring a secure and well-regulated environment for crypto-related activities.
Former MAS Chair Tharman Shanmugaratnam, known for his cautious stance on crypto assets, secured victory in Singapore’s presidential race. Shanmugaratnam, who had previously labeled crypto assets as “highly volatile” and “highly risky as investment products,” offered a further indication of Singapore’s nuanced approach towards the crypto sphere. His election is significant in Singapore’s evolving relationship with digital currencies.
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