Singapore’s Central Bank Strengthens Customer Due Diligence

The central bank of Singapore, the Monetary Authority of Singapore (MAS), has issued a notice necessitating the cryptocurrency companies to undertake stringent customer due diligence, effective from June 1, 2023. The MAS has reportedly directed the digital token payment or cryptocurrency entities to identify and report “high-risk customers” served by them, whilst also collecting and providing more information.

The Chinese reporter Colin Wu shared more information on the MAS’ recent reporting requirements in a tweet on his official page Wu Blockchain:

The MAS categorizes “Higher risk customers” as those who pose a “higher risk for money laundering or terrorism financing.” The MAS implements “appropriate internal risk management systems, policies, procedures, and controls” to contain the conduct of the higher risk customers.

Notably, the Monetary Authority of Singapore has recently granted the cryptocurrency exchange company based in Singapore, Crypto.com, a Major Payment License (MPI) for Digital Payment Token (DPT) services in Singapore.

Kris Marszalek, CEO of Crypto.com, commented,

The Monetary Authority of Singapore is recognized globally as a regulator that ensures responsible innovation of the digital assets sector. We are proud to receive the license from a regulator that prioritizes consumer protection, safety, and security. We look forward to continuing to collaborate with MAS and leading at the forefront of crypto in our home market of Singapore.

Singapore has been taking steps to emerge as a hub for blockchain and fintech innovation as it pursues its ongoing commitment to developing the web3 community in Singapore. Recently, the MAS signed a Memorandum of Understanding (MoU) with the High-performance infrastructure for cloud computing, Google Cloud to advance capabilities in Generative AI (artificial intelligence) technology.