Singapore May Introduce Caning for Crypto Fraudsters Amid Rising Scams

Singapore is considering harsher penalties, including caning, for crypto fraud as authorities crack down on financial crimes. Minister of State for Home Affairs Sun Xueling revealed that stricter punishments are under review to combat the growing threat of cryptocurrency scams.

During a parliamentary budget debate, Xueling noted that crypto-related scams accounted for a quarter of all fraud losses last year. Criminals often trick victims into converting money into digital assets before siphoning them off, while others use phishing and malware to drain crypto wallets.

Member of Parliament Tan Wu Meng (Jurong GRC) argued that Singapore’s current penalties are too lenient. He pointed out that illegal money handlers working for loan sharks can be caned for dealing with as little as $10,000, while fraudsters stealing $100,000 or more face only jail time. Tan proposed legal amendments to enforce mandatory caning for severe financial crimes.

Singapore has already taken steps to curb crypto-related fraud. The recently passed Protection from Scams Act grants police temporary powers to restrict transactions involving suspected scam victims. This law, expected to take effect later this year, aims to curb illicit financial activities in the digital asset space.

Caning, a controversial but legal form of corporal punishment in Singapore, is currently enforced for crimes like vandalism and drug trafficking. If implemented, it would mark one of the strictest anti-fraud measures globally, reinforcing Singapore’s stance against financial crimes.

With digital assets increasingly exploited by fraudsters, Singapore’s government remains firm on strengthening its regulatory framework to protect citizens from crypto scams.