Singapore Prohibits Cryptocurrency in Gambling to Combat Illegal Practices

Singaporean authorities are taking action against money laundering and related crimes by prohibiting the use of cryptocurrencies for gambling activities.

Recently, Singapore’s parliament approved changes to the Casino Control Act, aimed at improving the effectiveness of the nation’s casino regulations and safeguarding vulnerable communities.

Singapore Prohibits Cryptocurrency In Gambling To Combat Illegal Practices

In presenting these modifications, a government official emphasized Singapore’s commitment to balancing economic advantages from Integrated Resorts (IRs) with the need to reduce gambling-related issues.

Enhancing Regulatory Oversight

The new amendments introduce significant revisions to Singapore’s regulatory framework for casinos. The Gambling Regulatory Authority (GRA) will receive increased powers to oversee various gambling activities in casinos, including betting and lotteries, ensuring the regulatory environment stays current with innovations from casino operators.

Ministers will now oversee the divestment and acquisition processes concerning primary shareholders of casino operators, aligning them with government objectives. The GRA will also make critical decisions about controllers and key shareholders to combat any potential criminal influences within casinos.

The recent amendments by the Singapore parliament explicitly address digital currency. Importantly, the GRA will not permit cryptocurrencies to be used as casino chips due to concerns over money laundering.

Additionally, the amendments establish stricter penalties for specific violations. Previously minor infractions that were met with fines may now result in imprisonment, aligning the Casino Control Act with the recently enacted Gambling Control Act.

Safeguarding Vulnerable Individuals

A key focus of the changes is enhancing protection for at-risk groups. The National Council on Problem Gambling (NCPG) will gain greater authority concerning exclusion orders and visitation limits.

The penalties for minors using fake age identification to access casinos have also been increased significantly, with fines now set at $10,000, reflecting the government’s serious stance on such violations.

Despite these new measures, the government asserts that existing social safeguards like exclusion orders and visit limitations have proven effective. Currently, the rates of pathological and “problem gambling” among Singapore residents remain low and stable at around 1%.

Striking a Balance Between Economic Growth and Social Responsibility

The regulatory system for crypto and casinos in Singapore continues to evolve as the city-state seeks a balance between maximizing economic benefits from its IRs while addressing associated social challenges.

Recently, the government revised casino tax rates, introducing a multi-tiered system with higher rates than before, aiming to balance competitiveness with the need for revenue generation.

Image credited to CNN, chart by TradingView

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