Singapore bans Russian cryptocurrency transactions

Singapore has banned cryptocurrency transactions that are aimed at aiding Russia to circumvent sanctions. The country has made it illegal to enter into or facilitate all transactions that might aid Russia, including NFTs.

According to a press release, Singapore’s Ministry of Foreign Affairs (MFA) has placed a blanket ban on all financial transactions, including cryptocurrency transactions, that relate to Russia. 

“There is a prohibition on entering into or facilitating any transactions involving cryptocurrencies, to circumvent any of the above prohibitions in (a) to (e). This prohibition covers all transactions that involve cryptocurrencies and extends to the payment and settlement of transactions that relate to digital assets (including nonfungible tokens)”

Following the increasingly stringent economic sanctions that many nations have placed on Russia following their invasion of Ukraine, the city state of Singapore is the only south-Asian country to exact sanctions on Russia. 

The MFA outlined their reasons for introducing sanctions, noting:

 “Russia’s invasion of Ukraine contravenes the UN Charter and is a clear and gross violation of international law. While we continue to value good relations with Russia and the Russian people, we cannot accept the Russian government’s violation of the sovereignty and territorial integrity of another sovereign state. For a small state like Singapore, this is not a theoretical principle, but a dangerous precedent. This is why Singapore has strongly condemned Russia’s unprovoked attack on Ukraine.”

Singapore’s sanctions on Russia follow the actions of the US, Europe, and most G7 countries that have imposed sanctions against Russia. G7 countries announced plans for further sanctions last Friday following attacks near nuclear power plants. 

The blanket ban announced by Singapore prohibits transacting with four Russian banks, as the press release further outlines:

“There is a prohibition on entering into transactions or establishing business relationships with the following four Russian banks: (i) VTB Bank Public Joint Stock Company, (ii) the Corporation Bank for Development and Foreign Economics Affairs Vnesheconombank, (iii) Promsvyazbank Public Joint Stock Company, and (iv) Bank Rossiya (Designated Banks). For existing business relationships, all financial institutions must freeze any assets and funds of these Designated Banks.”

Last week Attorney General Merrick B. Garland announced the launch of Task Force KleptoCapture, a taskforce designed to enforce the sanctions imposed by the US and their allies. 

“The Justice Department will use all of its authorities to seize the assets of individuals and entities who violate these sanctions. “We will leave no stone unturned in our efforts to investigate, arrest, and prosecute those whose criminal acts enable the Russian government to continue this unjust war. Let me be clear: if you violate our laws, we will hold you accountable.” said Attorney General Merrick B. Garland.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.