Crypto Exchanges Must Comply With Russia Sanctions, Singapore’s Central Bank Says – Exchanges Bitcoin News

The Monetary Authority of Singapore (MAS) has reiterated that cryptocurrency exchanges must comply with restrictions on Russian users imposed over Moscow’s invasion of Ukraine. The reminder comes after researchers determined that pro-Russian activists have amassed millions of dollars in digital assets to support the war effort.

Singapore says measures targeting Russia apply to all financial institutions, including crypto exchanges

Compliance with economic sanctions against Russia is a must for licensed cryptocurrency exchanges, the Monetary Authority of Singapore (MAS) commented to local media on Monday. The statement comes after recent studies found that pro-Russian groups have received crypto-donations worth millions of US dollars to fund Russian military operations in Ukraine.

Following Russia’s invasion in late February, the MAS introduced financial measures in March targeting designated Russian banks, entities and activities, including fundraising for the benefit of the Russian government. In response to questions from Channel News Asia (CNA), a television channel owned by national broadcaster Mediacorp, the bank insisted:

These measures apply to all financial institutions in Singapore, including Digital Payment Token Service Providers (DPTSPs) licensed to operate in Singapore.

The regulator did not specify whether it had received any reports of exchanges being used to funnel cryptocurrency to pro-Russian groups. The supervisory authority nevertheless emphasized that providers of crypto services must have robust controls to avoid dealing with sanctioned banks and prohibited activities.

MAS pointed out that these platforms should perform customer due diligence to verify the identity of customers and screen their transaction counterparties. DPTSPs are also required to monitor for potential attempts to circumvent the bans such as the use of mixers and tumblers, the central bank elaborated.

A report released by blockchain investigative firm Chainalysis in July identified more than 50 organizations that had raised $2.2 million worth of cryptocurrency to support the Russian side in the Ukraine war. Andrew Fierman, head of sanctions strategy at the company, now told CNA that crypto donations, which are used to buy everything from drones to bulletproof vests, have already reached $4.8 million.

According to research published in October by another crypto-tracking platform, TRM Labs, as of September 22, the pro-Russian groups had raised $400,000 since the start of Russia’s invasion on February 24 of this year. Some of these organizations and activists have already been placed under Western sanctions.

While Singapore has welcomed the introduction of cryptocurrencies as they play a supportive role in the digital asset ecosystem, the city-state is also seeking to reduce risk for retail crypto investors through tighter regulations proposed last week by the MAS. Among the proposed measures is a risk awareness assessment for investors and a ban on the use of borrowed funds for crypto trading.

Do you expect Singapore to take further measures to prevent evasion of sanctions through crypto platforms licensed in its jurisdiction? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.