The Monetary Authority of Singapore (MAS) Currency exchanges must comply with restrictions on Russian users imposed over Moscow’s invasion of Ukraine. The reminder comes after researchers established that pro-Russian activists raised millions of dollars in digital assets to support its war effort.
Singapore has stated that measures targeting Russia apply to all financial institutions, including cryptocurrency exchanges
Compliance with financial sanctions against Russia , which is mandatory for the Monetary Authority of Singapore (MAS), a licensed cryptocurrency exchange, commented to local media on Monday. The statement comes after a recent study found that pro-Russian groups received millions of dollars worth of cryptocurrency donations to fund Russian military operations in Ukraine. .
After Russia’s invasion in late February, the MAS He introduced financial measures in March targeting specified Russian banks, entities and activities. This includes financing that benefits the Russian government. In response to a question from Channel News Asia (CNA), a television channel owned by the state-owned Broadcasting Media Corp, the bank claimed:
Applies to all financial institutions in Singapore, including service providers. (DPTSPs) Licensed to operate in Singapore.
The regulator did not disclose whether it had received reports that the exchange had been used to send cryptocurrencies to pro-Russian groups. Nonetheless, officials stressed the need for robust controls by crypto service providers to avoid dealing with licensed banks and prohibited activities.
MAS noted that these platforms must perform customer due diligence to verify the identity of customers and screen counterparties. The DPTSP should also monitor potential attempts to circumvent the ban, such as using mixers and tumblers, the central bank elaborated.
A report released in July by blockchain forensics firm Chainalysis found that more than $2.2 million worth of cryptocurrency was collected and stolen from Russia. More than 50 organizations have been identified to support the side. Ukraine war. The company’s head of sanctions strategy, Andrew Fearman, has already reached $4.8 million in cryptocurrency donations used to buy everything from drones to bulletproof vests, he told CNA. rice field.
According to a study released in October by another cryptocurrency tracking platform, TRM Labs, as of September 22nd, pro-Russian groups believed that the Russian invasion would take place on February 24th of this year. It has raised $400,000 since its inception. Some of these organizations and activists are already under Western sanctions.
Singapore has welcomed the adoption of cryptocurrencies due to their supporting role in the digital asset ecosystem, but the city-state has been skeptical of cryptocurrencies through tougher regulations proposed by the MAS last week. It seeks to reduce risk for retail investors in the currency. Among the measures proposed are risk awareness ratings for investors and a ban on using borrowed funds for cryptocurrency trading.
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