This statement was made by Sun Xueling, Minister of State at the Ministry of Internal Affairs and the Ministry of Social and Family Development on September 10.

The Minister clarified Singapore’s stance on the use of cryptocurrencies in casinos during the Second Reading of the Casino Control (Amendment) Bill.

This bill was introduced on July 4, 2024, with the aim of future-proofing the framework regulating Singapore’s casino activities.

The amendments to the Casino Control Act give the Gambling Regulatory Authority the power to determine the betting instruments that can be used as chips in casinos in Singapore.

Additionally, these changes aim to create a framework for cashless gambling, as part of Singapore’s efforts to future-proof its gambling industry.

However, State Minister Sun Xueling stated that cryptocurrencies will not be covered by this expanded regulation, citing risks associated with money laundering and other financial crimes. This decision reflects Singapore’s cautious approach to crypto assets in the fight against financial crime.

Concerns that cryptocurrencies pose money laundering risks are not unique to Singapore. A report published by the United Nations Office on Drugs and Crime in January 2024 stated that cryptocurrencies and casinos are increasingly used tools for laundering illicit funds.

Criminal networks use online casinos as a tool to hide the source of illicit funds, using the anonymity and unregulated nature provided by cryptocurrencies. This is seen as one of the reasons why countries such as Singapore exclude cryptocurrencies from the gambling industry.

Singapore’s approach is in line with other countries such as Australia and Brazil, as part of efforts to reduce the money laundering risks of cryptocurrencies.

For example, the Australian government has banned the use of cryptocurrencies in online betting, restricting payment methods such as digital wallets and credit-linked cards to enable individuals to better control their gambling habits.

Similarly, Brazil banned the use of cryptocurrencies for gambling payments in April 2024. This move by Brazil aims to ensure transparency and prevent financial crimes, amid concerns that digital assets may increase money laundering risks.

Despite this, the global crypto gambling market continues to grow. The popularity of gambling with cryptocurrencies is growing rapidly, with the market nearly doubling to over $70 billion in the first half of 2024.

This growth trend is expected to continue and it is predicted that the market may reach $150 billion by 2030. This shows that crypto gambling continues to grow globally despite regulations in Singapore and other countries.

However, despite this growth, governments continue to be wary of the use of cryptocurrencies in illegal activities. Singapore’s ban on the use of cryptocurrencies in casinos shows that it takes a strict stance in the fight against money laundering and financial crimes.

This decision indicates that regulations on the use of crypto assets will be tightened in the future and the use of cryptocurrencies will be further restricted, especially in financially risky sectors such as gambling.