Crypto Exchanges in Singapore Must Comply With Russia Sanctions, MAS Reiterates

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

Fazzaco Hall of Fame 2022 Officially Opens (Click to Nominate)!

Following Russia's invasion in late February, MAS introduced in March financial measures aimed at designated Russian banks, entities, and activities, including fundraising benefiting the Russian government. 

Responding to queries from medias, MAS 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 if it had received any reports of exchanges being used to channel cryptocurrency to pro-Russian groups. Nevertheless, the authority emphasized that crypto service providers must have robust controls in order to avoid dealing with sanctioned banks and banned activities.

The MAS pointed out that these platforms should perform customer due diligence to verify the identities of their customers and screen their transacting counterparties. DPTSPs are also required to monitor for potential attempts to evade the prohibitions such as the use of mixers and tumblers, the regulator elaborated.

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