In this post:
- Although no new regulations have been announced, officials are stepping up their scrutiny of fraud.
- Singapore’s Minister of Home Affairs cautioned citizens about the high risks of cryptocurrency scams and advised them to avoid them.
- A member of parliament called for harsher punishments for crypto fraudsters, including caning for serious offenses.
The Singapore Minister of State for Home Affairs, Sun Xueling, has encouraged the populace not to invest in cryptocurrencies since the number of linked frauds has increased.
She stated during her March 4th speech in parliament that the anonymity of cryptocurrencies makes them difficult to regulate and gives criminals an advantage.
“We advise the general people to avoid cryptocurrency. The risk of getting burnt is enormous, and if you become a victim of a scam, the chances of getting any of your money back are slim,” said Sun Xueling.
The Monetary Authority of Singapore regulates local crypto operations under the Payment Services Act, but most exchanges and wallets are outside its jurisdiction. With the increased use of cryptocurrencies, criminals are now using them to force victims to withdraw their money into digital money so that it can hardly be traced. The Monetary Authority of Singapore suffered 1.1 billion yuan losses from scams last year, 70% more than in the same period last year. These scams included those involving cryptocurrencies and accounted for a quarter of the losses incurred.
Demands for harsher sanctions for fraud
There was also discussion about whether fraud penalties ought to be harsher. According to Jurong GRC MP Dr. Tan Yew Meng, Singapore’s current legal system is unduly lax. Fraudsters who steal considerably greater sums of money can get away with it, but moneylenders who handle $10,000 worth of illegal funds risk being caned.
He even supported mandatory caning in situations where the fraud offense is deemed serious. His remarks reveal the growing alarm regulators have expressed in recent years regarding the surge in cryptocurrency scams.
According to Sun, the government is now reviewing anti-fraud legislation and expanding the list of offenses that carry the death penalty. According to her, over 80% of the scam victims voluntarily gave the money to the con artist by impersonating them, posing as authorities, or making false claims of financial advantage.
The Anti-Fraud Protection Bill was recently passed by the Singaporean government in an effort to lessen this menace. However, if the victims disregard the threats, the law permits police to block their assets. This is expected to be put into effect this year.
However, a policy change addressing some of these issues has not yet been made. However, it should be mentioned that new laws may soon be enacted, based on rumors from the local media. The use of cryptocurrencies is growing in Singapore, meanwhile, in spite of the fraud instances. To increase stability, Singapore’s central bank increased the market’s licenses in 2024.
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