The Monetary Authority of Singapore (MAS) has issued a stark warning: crypto tokens and service providers are high-risk sectors for money laundering. In a recent report, MAS highlighted the increasing number of cases involving digital payment tokens (DPTs) and the various ways they can be exploited.

Singapore has already witnessed a severe case of money laundering involving cryptocurrencies, with $3.8 million worth of cryptos withdrawn from a Binance account linked to the accused. Angela Ang, Senior Policy Advisor at TRM and former MAS Deputy Director, emphasized the historic magnitude of this case, noting that crypto is becoming a significant component in large financial crime cases.

To combat these risks, MAS has tightened its regulatory oversight, introducing amendments aimed at promoting the productive use of blockchain technology while addressing money laundering risks. The changes, which have been in development for several years, aim to bring clarity to key aspects of the crypto ecosystem.

Although the risks associated with digital payment token activities in Singapore are relatively small compared to global activities, the authorities are closely monitoring the sector. Payment institutions providing cross-border money transfer services also pose a higher money-laundering risk. Singapore remains committed to reviewing and implementing measures to address these risks, ensuring user protection and financial stability.