Singapore regulators have no plans to allow the use of cryptocurrencies for gambling due to money laundering risks.
In a speech to Parliament on September 10, Minister for Home Affairs and Social and Family Development Ms Sun Xue Ling clarified Singapore’s regulatory stance on the use of cryptocurrencies in casino gambling. The minister’s remarks were made during the closing speech of the Casino Control (Amendment) Bill at its second reading.
Introduced on 4 July 2024, the Bill aims to create a future-proof framework for regulating casino gambling activities in Singapore, empowering the gambling regulator to define chips as any betting medium for casino gambling.
However, the minister stressed that cryptocurrencies would not be included in this expanded scope.
Singapore’s Casino Control Act amendments have been touted as a move to “future-proof the system” and create a framework for “cashless gambling,” but the Minister of State has categorically ruled out the use of cryptocurrencies, citing money laundering concerns.
“GRA has no intention of allowing cryptocurrencies to be used as chips for casino gambling, as this would create money laundering risks.”
Mrs. Sun Xueling, Minister of the Interior
Singapore’s exclusion of cryptocurrencies from casino operations comes amid growing awareness of the risks they pose in the money laundering sector.
According to a report released in January 2024 by the United Nations Office on Drugs and Crime, cryptocurrencies and casinos are increasingly being used as tools to launder illicit funds, with criminal organizations exploiting the anonymity and lack of regulation associated with digital currencies to use online casinos as a conduit to conceal the source of illicit funds.
“Organized crime groups flock to where there is a vulnerability, and casinos and cryptocurrencies have proven to be the points of least resistance.”
Jeremy Douglas, UNODC Regional Representative for South-East Asia and the Pacific
Increasing trend
The boycott of cryptocurrencies for gambling purposes is part of a broader trend that has also been seen in Australia, where the government recently banned cryptocurrencies from online betting, including digital wallets and credit-linked cards, in an effort to help individuals control their gambling habits.
Similarly, Brazil has banned the use of cryptocurrencies for gambling payments from April 2024, targeting digital assets like Bitcoin to increase transparency and reduce the potential for money laundering.
However, the global crypto gambling market tells a different story. As previously reported by crypto.news, the crypto gambling market is expected to nearly double in the first half of 2024 to over $70 billion, and is expected to reach a whopping $150 billion by 2030.