In a terror threat assessment conducted in Singapore, it was stated that the use of cryptocurrencies in terror financing increased, while the dominance of cash and other instruments continued.
The report also noted that the threat level had risen as the Israeli-Palestinian conflict escalated.
The Singapore government has noted that while cash and other informal value transfer systems remain the dominant means of financial transactions, the use of cryptocurrencies in terror financing is increasing.
The Home Office’s report assessing the terrorist threat to Singapore said that while there was no indication of an imminent attack, the threat to the city-state was “very real” and “high”.
It pointed to ISIS sending monthly funds in cryptocurrency to people in the al-Hol detention camp in northern Syria, where ISIS-affiliated and displaced people are housed. The report also highlighted how pro-ISIS groups in Southeast Asia shared a poster “soliciting cryptocurrency donations.”
“As a global financial centre and transport hub with a significant expatriate workforce, Singapore remains a potential source of funding for terrorists and terrorist organisations abroad,” the report said. “Our strongest defence is our collective vigilance.”
The report also noted that the threat level had risen amid a renewed escalation of the Israeli-Palestinian conflict.
In the months following Hamas’ October 7, 2023, attack on Israel, a Wall Street Journal report alleged that Palestinian groups had received significant funding in cryptocurrencies. The report was denied by blockchain analytics firms such as Chainalysis, which suggested that such claims were likely exaggerated, and blockchain security firm Elliptic, which said that such claims were likely exaggerated.
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