All approved cryptocurrency exchanges in Singapore were reminded to abide by the financial restrictions put in place against Russia by the Monetary Exchange of Singapore (MAS), the nation’s central bank and financial regulator.
This declaration follows investigations that showed pro-Russian organisations generated millions of dollars in cryptocurrency donations in favour of the ongoing conflict in Ukraine and tighter international financial sanctions against Russia.
Singapore’s decision aligns it with the sanctions against Russia that the European Union originally put in place earlier this year. The sanctions first restricted crypto payments between the EU and Russia to about $10,000.
Along with the restriction on any fundraising for any activities that could benefit the Russian government, MAS implemented measures targeted at Russian banks and other companies with a presence in the nation around the time the EU imposed its first round of sanctions.
Regardless of the size of the wallet, the most recent restrictions in early October tightened security even more and outlawed all crypto-asset wallet, account, and custody services. Since the outbreak of the war, cryptocurrency exchanges and related platforms have been moving by sanctions on Russia.
As a result, a large number of Russian customers are moving to nearby nations like Kazakhstan to continue using services that were previously accessible to them.
The Bank of Russia has accelerated the development of the digital version of the Russian ruble as a result of sanctions imposed as a result of Moscow’s invasion of Ukraine. Analysts predict that the CBR would maintain its strict stance against decentralised cryptocurrencies to account for the growth of its digital currency. Additionally, they argue that the introduction of a digital ruble would result in a withdrawal of funds from bank accounts, increased competition in the financial market, and rising loan rates.