Singapore drops cryptocurrency use for gambling citing money laundering concerns

Singaporean regulators haven’t any plans to permit the usage of cryptocurrency for playing as a result of dangers of cash laundering.

Throughout a parliamentary speech on September 10, Ms Solar Xueling, Minister of State for the Ministry of Dwelling Affairs and the Ministry of Social and Household Improvement, clarified Singapore’s regulatory place on the usage of cryptocurrencies in on line casino playing. The minister’s feedback have been made throughout the closing speech for the second studying of the On line casino Management (Modification) Invoice.

Launched on July 4, 2024, the invoice goals to future-proof the framework for on line casino playing operations in Singapore, whereas giving the Playing Regulatory Authority the ability to prescribe any betting instrument as chips for on line casino playing.

Nevertheless, the minister has emphasised that cryptocurrencies won’t be a part of this expanded scope.

Whereas the amendments to Singapore’s On line casino Management Act have been promoted as a step in the direction of ‘future-proofing the regime’ and establishing a framework for ‘cashless playing’, the International Minister firmly shut down the usage of cryptocurrencies out, citing considerations about cash laundering.

“GRA doesn’t intend to permit cryptocurrency for use as chips for on line casino playing as this poses cash laundering dangers.”

Ms. Solar Xueling, State Minister of the Ministry of Dwelling Affairs

Singapore’s exclusion of cryptocurrencies from its on line casino operations corresponds with a rising recognition of the cash laundering dangers they pose.

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In accordance with a January 2024 report from the UN Workplace on Medication and Crime, cryptocurrencies and casinos have more and more grow to be instruments for laundering illicit funds, with legal networks exploiting the anonymity and lack of regulation related to digital currencies to to hide the origin of unlawful funds. on-line casinos as channels.

“Organized crime teams have converged the place they see vulnerabilities, and casinos and crypto have confirmed to be the purpose of least resistance.”

Jeremy Douglas, UNODC Regional Consultant for South East Asia and the Pacific

A rising development

Boycotting cryptocurrencies for playing is a part of a broader development, as seen in Australia, the place the federal government not too long ago banned cryptocurrencies for on-line playing, together with digital wallets and bank cards, to assist people preserve management over their playing habits.

Equally, Brazil additionally banned the usage of cryptocurrencies for playing funds in April 2024, specializing in digital property comparable to Bitcoin to extend transparency and cut back the possibility of cash laundering.

Nonetheless, the worldwide crypto playing market tells a really completely different story. As beforehand reported by crypto.information, the crypto playing market has nearly doubled to over $70 billion within the first half of 2024, with forecasts pointing to a staggering $150 billion by 2030.

Learn extra: BitGo obtains a serious funds license from Singapore’s MAS