Authorities consider harsher penalties, including caning, to deter financial crimes and protect citizens from crypto scams.
Singapore’s Crackdown on Crypto Fraud
Singapore is exploring stricter punishments for crypto fraud, with lawmakers proposing caning as an additional penalty for serious financial crimes. Minister of State for Home Affairs Sun Xueling stated that authorities are evaluating tougher measures to combat the growing issue of digital asset scams.
Growing Concern Over Crypto Scams
Fraudsters in Singapore increasingly use cryptocurrencies to bypass banking regulations. According to Xueling, crypto-related scams accounted for a quarter of all fraud-related losses last year. Criminals often trick victims into converting money into digital assets or use phishing and malware tactics to drain crypto wallets.
Parliament Pushes for Stricter Punishments
During a parliamentary debate, Member of Parliament Tan Wu Meng argued that existing penalties for fraudsters are too lenient. He highlighted the inconsistency in Singapore’s legal framework, noting that loan sharks’ runners handling $10,000 in illegal funds can be caned, while fraudsters stealing over $100,000 currently cannot. He proposed legal amendments to enforce mandatory caning for severe financial crimes.
New Legal Framework to Combat Scams
To address the rise in crypto-related fraud, Singapore recently passed the Protection from Scams Act. This law grants police the power to temporarily restrict transactions involving suspected scam victims. The legislation is expected to take effect later this year.
Caning as a Deterrent for Financial Crime
Singapore enforces corporal punishment for various offenses, including drug trafficking and vandalism. The government is now considering whether applying caning to crypto fraud could serve as an effective deterrent. While crypto fraudsters already face fines and jail time, the proposed amendment could introduce physical punishment for those convicted of large-scale financial crimes.
Implications for Crypto Regulation
The proposal signals a tougher stance on financial crimes involving digital assets. Singapore has been proactive in regulating the crypto sector, implementing strict Anti-Money Laundering (AML) policies and licensing requirements. If approved, this measure would set a precedent for harsher penalties in financial fraud cases.
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