regional markets to funding solutions. a trusted financial centre the third key attribute for the success of singapore ’ s financial centre is trust. • financial institutions from all over the world come to singapore because this is a jurisdiction they can trust. • there is rule of law, clarity and consistency in regulation, rigour and fairness in supervision, and no tolerance for misconduct. upholding high standards of integrity in the financial industry is an absolute priority. this means having an effective regime against : • market misconduct and misdemeanours ; and • illicit finance, namely money laundering and terrorism financing. mas is stepping up enforcement action against misconduct such as insider trading, false trading and front running by individuals and traders in the securities market. • we have sought criminal actions or higher civil penalties to send the right deterrent message. • in april last year, mas imposed a civil penalty of close to $ 12 million for insider trading – the highest quantum in a single case so far. bis central bankers ’ speeches when it comes to anti - money laundering and countering the financing of terrorism ( aml / cft ), the rules are strict and in line with international standards. financial institutions must : • know their customers ; • assess the risks and perform additional due diligence where the risks are higher ; • monitor transactions on an ongoing basis and report any suspicious activities. supervision of financial institutions is rigorous. • in recent years, mas has stepped up its onsite supervision of aml / cft controls – increasing the number of inspections by six - fold. • this is resource - intensive business : each aml / cft inspection of a bank takes about 4 – 8 weeks and involves 4 – 6 supervisors. we have now set up a dedicated aml department. we will : • make more robust risk assessments of financial institutions ’ business activities, client profiles, geographical connections, transaction volumes, and quality of controls ; • intensify supervision of financial institutions that pose higher risks ; • conduct thematic inspections of activities that pose higher risk across financial institutions ; and • step up engagement with financial institutions to promote deeper understanding of emerging risks and typologies as well as best practices to mitigate these risks. but mas cannot inspect every bank every year. nor can we go through all transactions. and we certainly do not set out to detect fraud – which would take months of intense scrutiny. responsibility for aml / cft rests with the board and senior management of financial institutions. they must : • put in

stability risks from digital asset activities are currently low but bear close monitoring. as the digital asset ecosystem grows, it will be natural for linkages between the traditional banking system and digital assets to grow. there is risk of contagion to financial markets through exposures of financial institutions to digital assets. mas is working closely with other regulators to design a prudential framework for banks ’ exposures to digital assets. this framework will provide banks with clarity on how to measure the risks of their digital asset exposures, and maintain adequate capital to address these risks. this will reduce risks of spillovers into the traditional banking system. innovation and regulation hand - in - hand singapore wants to be a hub for innovative and responsible digital asset activities that enhance efficiency and create economic value. the development strategy and regulatory approach for digital assets that i have described go hand - in - hand towards achieving this. innovation and regulation are not incapable of co - existing. we do not split the difference by being less stringent in our regulation or being less facilitative of innovation. mas ’ development strategy makes singapore one of the most conducive and facilitative jurisdictions for digital assets. at the same time, mas ’ evolving regulatory approach makes singapore one of the most comprehensive in managing the risks of digital assets, and among the strictest in areas like discouraging retail investments in cryptocurrencies. i hope this presentation has made clear that mas ’ facilitative posture on digital asset activities and restrictive stance on cryptocurrency speculation are not contradictory. it is in fact a synergistic and holistic approach to develop singapore as an innovative and responsible global digital asset hub.