Singaporean regulators have made it clear that cryptocurrency will not be permitted for gambling due to money laundering risks.
In a September 10 parliamentary address, Ms. Sun Xueling, Minister of State for the Ministry of Home Affairs and Ministry of Social and Family Development, clarified Singapore’s stance during the conclusion of the Casino Control (Amendment) Bill’s Second Reading.
The bill, introduced on July 4, 2024, aims to modernize Singapore’s casino gambling framework and grants the Gambling Regulatory Authority (GRA) authority to designate any wagering instrument as casino chips. However, Ms. Sun emphasized that cryptocurrencies will be excluded from this scope, citing concerns over their potential role in money laundering.
Although the amendments aim to future-proof the casino regime and encourage cashless gambling, the Minister firmly ruled out cryptocurrency use, stating that GRA has no intention of allowing cryptocurrency to be used as chips for casino gambling as this presents money laundering risks.
This decision aligns with broader global concerns about the illicit use of cryptocurrencies. A January 2024 report by the UN Office on Drugs and Crime highlighted how both casinos and cryptocurrencies have increasingly been exploited by criminal networks to launder illicit funds. According to Jeremy Douglas, UNODC Regional Representative for Southeast Asia and the Pacific, these platforms represent a vulnerability that organized crime groups have exploited.
The rejection of cryptocurrency for gambling is part of a growing global trend. Australia recently banned its use for online betting to help individuals control gambling habits, while Brazil also prohibited cryptocurrency payments for gambling in April 2024 to improve transparency and reduce money laundering risks.
However, the global crypto gambling market continues to thrive, having nearly doubled to over $70 billion in the first half of 2024, with forecasts predicting growth to $150 billion by 2030.
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