Singapore's government has spotted an uptick in cryptocurrency use for terror financing. But cash and informal value transfer systems still rule the roost for financial transactions.
The Ministry of Home Affairs dropped a report assessing the terrorist threat to Singapore. It found no signs of an imminent attack. Yet the threat to the city-state remains "very real" and "high".
The report pointed to monthly crypto funds sent by ISIS to folks at the Al-Hol detention camp in Northern Syria. This camp houses ISIS-affiliated and displaced individuals.
It 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 migrant workforce, Singapore remains a potential source of funds for terrorists and terrorist organisations abroad," the report said.
The government stressed that "Our strongest defence is our collective vigilance."
The report noted that the threat level has gone up since the Israel-Palestine conflict kicked off again.
After Hamas' attack on Israel on October 7, 2023, a Wall Street Journal report claimed Palestinian groups got hefty funds in crypto.
But blockchain analytics firms like Chainalysis pushed back. They suggested such claims are likely overstated.
Blockchain security firm Elliptic also chimed in. They said these claims are probably exaggerated.