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March 7, 2022

Singapore Shuts Down Crypto Transactions

Russia has been met with harsh criticism for its invasion of Ukraine. Singapore has joined other concerned countries in imposing sanctions on Russia that include a wide range of commercial operations, including cryptocurrency.

Singapore’s Ministry of Foreign Affairs (MFA) said in a news release that the government is making it illegal to enter into or assist cryptocurrency transactions with Russia. According to the notice, the prohibition applies to all types of digital assets, including NFTs.

“The prohibited cryptocurrency transactions cover all transactions that involve cryptocurrencies and extend to the payment and settlement of transactions that relate to digital assets (such as non-fungible tokens).”

Singapore, according to the government authority, was pursuing measures against Russia despite the United Nations Security Council’s (UNSC) veto. This is due to the fact that Russia’s invasion of Ukraine poses a threat to minor countries like Singapore if it is successful.

In the same line, Singapore has prohibited the facilitation of any transactions that will assist Russia in circumventing sanctions. Banks, finance businesses, insurers, capital market intermediaries, stock exchanges, and payment service providers are all covered by the statute.

The country has also frozen the assets of many Russian banks operating on its territory. VTB Bank, Vnesheconombank, Promsvyazbank, and Bank Rossiya are among them.

Similarly, Singapore has suspended all exports to Russia and the two Ukrainian breakaway territories, Donetsk and Lugansk, which Russia has opted to recognize as separate republics.

The city-state is the first and only country in South Asia to impose an embargo on Russia. Other countries, including the United States, the European Union, and the majority of the G7, have severed ties with the country.

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They have also taken steps to keep Russia out of the cryptocurrency sector. As a result of Singapore’s decision, crypto exchanges operating within its borders will be required to comply with Russia’s ban. Several exchanges, including Coinbase, Binance, and Kraken, have stated that imposing a blanket ban on all Russians is not an option.

They are, however, willing to comply with a directive from the governments of the nations in which they operate. The crypto market has not been spared the consequences of the Russia-Ukraine situation.

Bitcoin, the market-leading cryptocurrency, has seen its value swing drastically as geopolitical events continue to influence market sentiment. Bitcoin has moved between a high of $44,950 and a low of $37,699 in the last 14 days. The first cryptocurrency is currently selling at $39,287, a -3.95 percent decrease in the last 24 hours.

Turbulence has also affected the remainder of the market. The crypto market’s capitalization has slipped below $1.8 trillion. The crypto market cap is currently at $1.78 trillion, a -3.51 percent decrease.