Many China's crypto exchanges based their HQ and branches in Singapore. Some of the bosses of these crypto exchanges are wanted in China.
Cryptos are worthless if they cannot freely convert to money. Despite discouraging our retail investors from playing cryptos, our banks are facilitating the crypto industry, otherwise these exchanges will not be based in Singapore.
In similar light, foreign banks will ask you to declare funds from sanctioned states such as Russia, Myanmar, Pakistan, etc but our local banks accepts these $$$ via proxies.