Over 100 companies were either turned down or had to withdraw their applications for a license to offer crypto services in Singapore.
According to the Monetary Authority of Singapore (MAS), “Cryptocurrencies could be abused for money laundering, terrorism financing, or proliferation financing due to the speed and cross-border nature of the transactions”.
Earlier this year, Singapore started to regulate the crypto sector, and since then there have been more than 170 companies applying for a license to offer “digital payment token services”, and crypto services.
According to Nikkei Asia, over 100 of the companies that sent applications for a license were either rejected or forced to take back their applications. The companies that did get exempted were those that were already running their operations in the country before the licensing regime was introduced.
A spokesperson for the Monetary Authority of Singapore (MAS) said, “digital payment token service providers in Singapore … have to comply with requirements to mitigate such risks, including the need to carry out proper customer due diligence, conduct regular account reviews, and monitor and report suspicious transactions.”
According to the website of the Monetary Authority of Singapore, only three crypto companies are enlisted as licensed entities: DBS Vickers Securities, a unit of DBS Group Holdings, Southeast Asia’s largest bank, Australia’s Independent Reserve, and digital payments startup FOMO Pay.
In September, MAS stated that Singapore is on its way to becoming a global crypto hub. DBS’s head of capital markets and the chairperson of the bank’s crypto exchange said, “We are growing very rapidly. Investors are gradually exploring cryptocurrencies and digital assets.”
In order to meet the requirements of the authorities and successfully attain licenses, crypto companies can incorporate an AML Screening solution and prevent becoming the sources of financial crimes.
Suggested read: Crypto Providers at Risk of Money Laundering & Terror Financing, Says FMA
