Singapore’s Minister of State for Home Affairs, Sun Xueling, has strongly warned against crypto investments, citing the growing number of fraud cases linked to digital assets.
During a parliamentary debate on the Ministry of Home Affairs’ budget on March 4, she emphasized that cryptocurrency’s anonymous nature makes it difficult to regulate and an easy tool for criminal exploitation.
Singapore Reports $1.1B in Fraud Losses
According to the local news source, fraud cases in Singapore have reached alarming levels. Financial losses linked to scams rose 70% year over year to 1.1 billion yuan.
Sun highlighted that cryptocurrency scams accounted for a quarter of these losses, with scammers exploiting digital assets to evade financial oversight.
Criminals are now instructing victims to convert their money into cryptocurrency before transferring it, bypassing traditional banking security checks. Some scams involve direct theft from victims’ digital wallets through hacking and phishing tactics.
Singapore’s Monetary Authority regulates local cryptocurrency operators under the Payment Services Act, but many overseas exchanges and wallet providers remain beyond its jurisdiction.
Sun acknowledged that some people see cryptocurrency as a quick way to make money but warned that even experienced investors have fallen victim to increasingly sophisticated fraud schemes.
Last year, one of the most severe cases involved a victim who lost $125 million after clicking on a fake conference link that installed malware on their device.
Other scams include phishing websites, fraudulent investment schemes, and “pump-and-dump” tactics that manipulate the prices of digital assets before crashing them.
“Our advice to the public is to stay away from cryptocurrencies. The risk of getting burned is high, and if you become a victim of a scam, the chances of getting any of your money back are slim,” Sun warned.
The debate also touched on whether penalties for fraud-related crimes should be tougher. Jurong GRC MP Dr. Tan Yew Meng argued that the current legal framework is too lenient.
He noted that under Singapore’s Moneylenders Act, a loan shark handling $10,000 in illicit funds can be sentenced to caning, while fraudsters stealing much larger amounts often escape similar punishment. He called for mandatory caning for serious fraud offenses.
Sun responded that the government is reviewing penalties for fraud-related crimes, including the possibility of adding some to the list of offenses punishable by caning.
She pointed out that over 80% of scam victims willingly transferred their money, often manipulated through emotional tactics such as impersonation, false authority, or financial deception.
To address the rising threat, Singapore recently passed the Anti-Fraud Protection Bill, which grants authorities the power to temporarily block transactions of suspected fraud victims who refuse to heed warnings. The law is expected to take effect this year.
Singapore’s Crypto Adoption Grows as Retailers Embrace Stablecoin Payments
Singapore’s push for crypto adoption is gaining momentum, with businesses embracing digital payments under a clear regulatory framework.
The Monetary Authority of Singapore (MAS) has played a key role, doubling the number of crypto licenses in 2024 to strengthen market stability.
Retail giant Metro’s adoption of stablecoin payments highlights the shift toward blockchain-based transactions. This move signals growing confidence in digital assets and bridges traditional finance with crypto.
The entry of major players like Robinhood, which plans to launch crypto services in Singapore by late 2025 through its partnership with Bitstamp and Dtcpay, could further accelerate stablecoin adoption.
As the financial landscape shifts, Singapore continues to position itself at the forefront of digital finance, setting the stage for stablecoins to become a mainstream payment option across industries.
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