Singapore continues to prohibit the use of cryptocurrencies in its casinos as part of ongoing efforts to combat money laundering. This stance was reaffirmed on September 10, during a parliamentary session where Sun Xueling, Minister of State for Home Affairs and Social and Family Development, addressed the Second Reading of the Casino Control (Amendment) Bill.

The bill, introduced in early July, aims to modernize Singapore's casino regulations by allowing the Gambling Regulatory Authority (GRA) to approve new betting tools. However, despite the push for cashless gambling, cryptocurrencies will remain excluded from casino activities. Since April, both Brazil and Australia have implemented bans on the use of cryptocurrency for gambling activities.

"The amendment empowers GRA to prescribe any wagering instrument to be used as chips for casino gambling. The intent of this is to future-proof the regime to allow for new modes such as cashless gaming. [...] GRA has no intention of allowing cryptocurrency to be used as chips for casino gambling as this presents money laundering risks."

Singapore's two casinos, Marina Bay Sands and Resorts World Sentosa, will implement cashless gaming systems. Sun Xueling said the amendment aims to 'future-proof' the casino industry by enhancing security and reducing operational costs associated with cash handling.

The bill introduces several regulatory changes. It expands GRA's authority to regulate betting and lottery activities in casinos and reassigns approval authority for main shareholder divestments and acquisitions to the Minister for Home Affairs. GRA will oversee decisions about controllers and substantial shareholders. The legislation also mandates direct information sharing between casino operators. GRA will conduct inspections to ensure compliance.

The bill aligns penalties with the Gambling Control Act. The fine for minors using false evidence of age to enter casinos increases from $1,000 to $10,000, with possible imprisonment. In the past five years (2019-2023), three minors were found to have entered a casino using false evidence of age. In 2023, the Singaporean Police arrested more than 450 persons for illegal gambling activities, with about one-third of the arrests for remote gambling. Since 2015, GRA has blocked more than 3,800 illegal gambling websites and over 270 bank accounts linked to illegal online gambling.

Cryptocrime Continues to Grow

Cryptocurrency-related fraud saw a dramatic 45% surge in 2023, resulting in total losses of $5.6 billion, as per a recent report by the U.S. Federal Bureau of Investigations (FBI). The FBI's Internet Crime Complaint Center received almost 69,500 complaints related to crypto scams in 2023, with associated losses accounting for nearly half of all financial fraud losses reported that year. Over $10 million in crypto losses were reported by Singaporean victims.

A January report by the United Nations Office on Drugs and Crime (UNODC) highlighted the increasing use of crypto in online casinos for money laundering. Jeremy Douglas, the UNODC representative for Southeast Asia and the Pacific, said:

"While casinos and junkets have for years served as vehicles for regional underground banking and money laundering, the proliferation of online gambling platforms, e-junkets, and both illegal and underregulated cryptocurrency exchanges in Southeast Asia has changed the game, allowing for faster-anonymized movement of funds."

In 2023, Singapore authorities uncovered a money laundering syndicate involving more than S$1 billion in assets, including S$230,000 in Tether. The case was recently linked to unlicensed money lending in China, scams, and illegal online gambling in the Philippines.

"At the same time, the creation and success of these systems has helped expand the region’s broader, booming illicit economy, in turn attracting new networks, innovators, and service providers to the criminal ecosystem of Southeast Asia and the Mekong."

iGaming Expected to Reach $205 Billion by Mid-2030

UNODC reported that the global online gambling market is projected to grow to over $205 billion by 2030, with the Asia-Pacific region accounting for the largest share, at a projected 37% market growth between 2022 and 2026. Cryptocurrencies are playing a significant role in this expansion.

According to CoinMarketCap, the largest gambling-related cryptocurrencies by market capitalization include Rollbit Coin (RLB), Shuffle (SHFL), FUNToken (FUN), and BFG Token (BFG). Rollbit Coin leads the sector with a market capitalization exceeding $265 million, followed by Shuffle at approximately $41 million.

Rollbit Coin, launched in 2022, powers the Rollbit platform, which merges traditional casino games with crypto futures trading. Its rapid growth is attributed to this combination, appealing to users interested in both gambling and high-leverage financial trading. FUNToken, launched in 2017, is an Ethereum-based token that improves transaction speed and transparency for online gaming, remaining relevant due to its adoption across various platforms. BFG, the native token of BetFury, has attracted a loyal user base by offering casino games combined with staking opportunities, where players earn BFG while gaming and stake their tokens to generate passive rewards, appealing to both gamblers and investors.

While cryptocurrencies and online gaming platforms continue to grow globally, Singapore remains firm in excluding them from its tightly regulated casino landscape, reflecting its broader approach to safeguarding financial integrity and preventing criminal exploitation of emerging technologies.

Share this article
The link has been copied!