The Monetary Authority of Singapore (MAS) has raised the risk level of cryptocurrency exchange platforms from medium-low to medium-high as part of an update to the country's laws to prevent terrorist financing, Cointelegraph has reported.
The Terrorism Financing National Risk Assessment (NRA) and the National Strategy for Countering the Financing of Terrorism have been updated to prevent terrorist groups from taking advantage of Singapore's role as a global financial and business hub.
The update also highlights the high risk associated with cross-border online payments, which can be exploited for terrorist financing purposes.
This change follows a report that classified digital payment tokens as high risk in Singapore's updated Money Laundering National Risk Assessment (MLNRA), citing serious AML vulnerabilities by digital payment token service providers.