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Use of cryptocurrencies to finance terrorism increasing, but remains relatively low, Singapore says
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A Singapore terrorism threat assessment noted a growing use of cryptocurrencies in terrorist financing, although cash and other means remain dominant.
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The report also said the threat level has risen since the escalation of the Israeli-Palestinian conflict.
The Singapore government has noted an increasing use of cryptocurrencies in terrorist financing, even though cash and other informal value transfer systems remain the predominant means for financial transactions.
A report The Ministry of Home Affairs has assessed the terrorist threat to Singapore and determined that while there was no indication of an imminent attack, the threat to the city-state remained “very real” and “high”.
The report details monthly remittances sent in cryptocurrencies by ISIS to people in the Al-Hol detention camp in northern Syria, which holds ISIS affiliates and displaced people. The report also highlights how pro-ISIS groups in Southeast Asia shared a poster “soliciting cryptocurrency donations.”
“As a global financial centre and transportation hub with a large migrant workforce, Singapore remains a potential source of funds for terrorists and terrorist organisations abroad,” the report said. “Our best defence is our collective vigilance.”
The report also said the threat level has been elevated since the re-escalation of the Israeli-Palestinian conflict.
In the months following Hamas’ attack on Israel on October 7, 2023, a Wall Street Journal report claimed that Palestinian groups had received substantial funds in cryptocurrency. The report was refuted by blockchain analytics firms like Chainalysis suggests these claims are likely exaggerated., and blockchain Elliptic Security Company, who said such claims are likely exaggerated.
Learn more: Bipartisan bill to combat cryptocurrency-based terrorist financing introduced in US Senate