MAS outlook on Cryptocurrency
What is MAS's view of provision of custodian wallets as a DPT service provider's activity under PS Act?
Provision of custodian wallets for or on behalf of customers: As entities that offer standalone custodial services for DPTs are exposed to potential ML/TF risks, such entities could be used to safekeep illicit assets or assets for illicit actors (among others). The proposed amendments expand the definition of “digital payment token service” to include the service of safeguarding or administration of:
A DPT where the service provider has control over the DPT; or
A DPT instrument where the service provider has control over the DPT associated with the DPT instrument.