Singapore reports increased use of crypto to fund terrorism

Singapore is facing a troubling trend: more and more cryptocurrencies are being used to fund terrorisms around the world. 

The Ministry of Home Affairs (MHA) recently reported that, while traditional cash and informal systems still dominate, cryptocurrencies are becoming a big issue. In their words:

“Although there is increasing use of cryptocurrencies, the predominant means for financial transactions by ISIS and its affiliates remain cash couriers and informal value transfer systems (hawala).”

The report revealed that ISIS has been sending cryptocurrency to individuals in the Al-Hol detention camp in Northern Syria, where many people with ISIS ties are held. 

Also, pro-ISIS groups in Southeast Asia have been sharing posters online asking for crypto donations.

Crypto ownership rises in Singapore

In Singapore, more people are getting into cryptocurrencies. Folks across different ages and income levels are jumping on board. 

Surveys show that a massive number of Singaporeans now own some form of cryptocurrency, with young adults of 18-34 being the most active group.

Bitcoin is the most popular cryptocurrency among Singaporeans, with 73% of crypto owners holding it as of early 2024. 

Other popular options include Ether and XRP, though specific numbers for these aren’t as clear.

Several factors are making cryptocurrencies more appealing in Singapore. For one, the government has been relatively supportive, with clear regulations provided by the Monetary Authority of Singapore (MAS).

There’s also a growing awareness of blockchain technology, the backbone of cryptocurrencies, as it is seen as innovative and promising. 

Singaporeans are using cryptocurrencies for various reasons. Investment and trading are the most common, but there’s more to it. 

Cross-border remittances have become simpler and more cost-effective with cryptocurrencies, which is particularly useful in a global city like Singapore.

People are also using cryptocurrencies for everyday purchases and services, and some are exploring decentralized finance (DeFi) platforms. 

These platforms allow users to earn interest on their crypto, borrow money, and more, without needing a traditional bank.

But still. The MHA said, “In February 2024, US authorities reported that ISIS ‘transferred funds – up to USD20,000 (S$27,100) per month each – to individuals at the AlHol detention camp through intermediaries in Turkey via the hawala system, and via cash transfer apps and cryptocurrency.’”