Singapore drops cryptocurrency use for gambling citing money laundering concerns

Singaporean regulators do not plan to allow the use of cryptocurrencies for gambling purposes due to money laundering risks.

In her parliamentary speech on September 10, Ms Sun Xueling, Minister of State in the Ministry of Home Affairs and Ministry of Social and Family Development, explained Singapore’s regulatory stance on the use of cryptocurrencies in casino gambling. The minister’s remarks were made during the closing speech of the Second Reading of the Casino Control (Amendment) Bill.

The bill, introduced on July 4, 2024, aims to future-proof the framework governing casino gambling activities in Singapore and gives the Gambling Regulatory Authority the power to prescribe any betting instrument as a voucher for casino gambling.

However, the minister emphasized that cryptocurrencies will not be part of this expanded scope.

While the changes to Singapore’s Casino Control Act were promoted as a step towards “future-proofing the regime” and creating a framework for “cashless gambling”, the Minister of State has categorically rejected the use of cryptocurrencies, citing money laundering concerns.

“The GRA does not intend to allow cryptocurrencies to be used as chips in casinos because this creates money laundering risks.”

Mr. Sun Xueling, Minister of State for the Ministry of Internal Affairs

Singapore’s exclusion of cryptocurrencies from casino operations coincides with a growing awareness of the risks cryptocurrencies pose to money laundering.

According to a January 2024 report by the UN Office on Drugs and Crime, cryptocurrencies and casinos are increasingly becoming a means of laundering illicit funds. Criminal networks are exploiting the anonymity and lack of regulation associated with digital currencies to conceal the sources of illicit funds and use online casinos as a conduit.

“Organized crime groups coalesced where they saw a weak spot, and casinos and cryptocurrencies proved the point of least resistance.”

Jeremy Douglas, UNODC Regional Representative for Southeast Asia and the Pacific A growing trend

Boycotting cryptocurrencies for gambling is part of a broader trend seen in Australia, where the Australian government recently banned cryptocurrencies for online betting, including digital wallets and credit-linked cards, in an effort to help individuals gain control over their gambling habits.

Similarly, Brazil targeted digital assets such as Bitcoin in April 2024, banning the use of cryptocurrencies for gambling payments and increasing transparency and reducing the potential for money laundering.

However, the global crypto gambling market tells a completely different story. As previously reported by crypto.news, the crypto gambling market nearly doubled to over $70 billion in the first half of 2024, and forecasts suggest it will grow to $150 billion by 2030.