Register on the Bybit exchange and receive a bonus of $4000.

Singapore expresses concerns about digital payment token service providers

The report emphasizes the need to strengthen regulation and supervision of this fast-growing sector to ensure financial stability and user safety.

Date: 2024-06-21 Author: Marek Stiller
Singapore expresses concerns about digital payment token service providers

Singapore’s recently updated National Money Laundering Risk Assessment (NRA) has raised concerns about increased vulnerabilities posed by digital payment token (DPT) service providers.

The comprehensive 126-page report, which identifies new risk sectors not included in the previous 2014 report, also includes DPT service providers and gemstone and metal traders as areas of concern.

Of these sectors, the banking sector, including wealth management, was identified as posing the highest risk of money laundering. Banks are more susceptible to criminal exploitation due to their role in facilitating large transaction volumes and serving high-risk customers.

Zarejestruj się na giełdzie ByBit i odbierz bonus nawet do 30,000$!

Crypto asset service providers pose a high risk of

In the financial sector, DPT service providers, also known as virtual asset service providers, stand out as a high-risk category. The NRA report highlights an increase in the number of reported cases related to DPTs and various methods of exploitation.

Despite Singapore ‘s relatively small share of global DPT activity, authorities are closely monitoring the associated risks. Other high-risk sectors in the financial industry include payment institutions offering cross-border remittance services and third-party asset managers.

Register for ByBit

A report by the NRA, a joint effort between Singapore’s regulators and law enforcement agencies, the Financial Intelligence Unit, and feedback from private sector entities and foreign authorities, shows that the main money laundering risks in Singapore stem from fraud(particularly fraud using cyberspace), organized crime, corruption, tax crimes and commercial money laundering.

Typical money laundering methods include hiding illicit funds in bank accounts in Singapore, using fictitious companies and investing in valuable assets such as real estate or precious metals.

Singapore’s status as an international financial center and its economic openness make it vulnerable to money laundering risks. Criminals use the country’s financial and business infrastructure to launder or transfer illicit funds.

Moreover, converting illicit funds into assets such as real estate, digital payment tokens or precious metals poses serious risks.

To address these concerns, the Monetary Authority of Singapore (MAS) announced in April that it would implement amendments to the country’s Payment Services Act (PS Act) to expand regulated services related to digital payment token providers.

Bitcoin ETFs boost cryptocurrency adoption in Singapore

Singaporeans increasingly view Bitcoin in a positive light, thanks to the recent approval of Bitcoin exchange-traded funds in the United States. According to a recent report by digital currency exchange Independent Reserve, 39% of Singaporeans expressed a more favorable opinion of Bitcoin following the approval of Bitcoin ETF funds.

The survey also revealed that Singaporean cryptocurrency investors are becoming more experienced. More than half (52%) have been in the market for more than three years, and their portfolios are becoming more diverse, with 16% now holding six or more different cryptocurrencies.

This year, 64% of cryptocurrency owners reported profits, a significant increase over previous years, while only 10% reported losses. Similarly, a separate report by Seedly and Coinbase conducted in the fourth quarter of 2023 and covering more than 2,000 adults found that 57% of respondents now own digital assets.

Sign up for ByBit
Marek Stiller
Marek Stiller
Founder of the "Cryptocurrency for Beginners" channel on YouTube. He collaborates with Łukasz to form the Arena Trading group, while at the same time being passionate about blockchain technology. His knowledge and experience in the cryptocurrency industry help beginner investors better understand this dynamic market.
Register on the Bybit exchange and receive a bonus of $4000.
Get Bonus