Singaporean authorities call on cryptocurrency exchanges to block accounts of Russians due to war in Ukraine

The Monetary Authority of Singapore (MAS) has reminded licensed cryptocurrency exchanges to comply with sanctions against the terrorist state of the Russian Federation. The agency’s statement came after a series of media reports about pro-Russian groups raising millions of dollars in cryptocurrency to support the war in Ukraine.

MAS representatives did not say whether local platforms helped the occupiers raise funds. However, they emphasized that crypto service providers are obliged to «strictly control» interaction with banks under sanctions, as well as stop ignoring the financing of prohibited activities.

In addition, exchanges should monitor potential attempts to circumvent sanctions, in particular through the use of cryptocurrency mixers. Financial institutions that have information about the prohibited activities of Singaporean crypto exchanges or branches of foreign crypto exchanges in the country must immediately notify the central bank. Under the current legislation, a financial company found guilty of violating regulatory rules may be fined up to S$ 1 million (over $ 709,000).

In March, after the invasion of Ukraine, Sparrow, a cryptocurrency exchange operating in Singapore, announced that it prohibits transactions involving legal entities and individuals from sanctioned countries, including Russia.

«We analyze the source and destination of cryptocurrency transactions to ensure that they are not coming from or going to Russia,» said Mac Chang Yee, chief risk and compliance officer at Sparrow. She added that the platform blocks access to its services for Russian IP addresses.

The list of cryptocurrency companies and services that refuse to tolerate the aggressive actions of the terrorist state is growing steadily. Earlier, Cryptopay, a payment service for cryptocurrency transfers, supported the eighth package of sanctions against the occupier — since October 21, users from Russia have not been able to withdraw digital assets from the platform. The LocalBitcoins project did the same, spreading the message that citizens of the aggressor country can no longer use the service. Blockchain.com, cryptocurrency exchanges Coinbase, Crypto.com, and BitMEX, as well as Revolut and Huobi bank, are also in solidarity with Ukraine and Europe.

Last weekend, Binance, the world’s largest cryptocurrency exchange, finally broke its silence on EU sanctions. However, for some reason, the company found the sanctions provisions incomprehensible. «We are trying to comply with the sanctions as they are. The task is not to overdo it, to do what we are told. However, the regulations must be clear,» said representatives of the crypto exchange.