March 07, 2025
By Anjali Kochhar
Singapore’s Minister of State for Home Affairs, Sun Xueling, has cautioned citizens against investing in cryptocurrencies due to a sharp rise in scams. Speaking in parliament on March 4, she pointed out that digital assets are difficult to regulate because of their anonymity, making them an attractive tool for fraudsters. She advised the public to steer clear of crypto investments, warning that the risks are high and victims of fraud have little chance of recovering their lost money.
Over the past year, financial fraud has escalated in Singapore, with citizens losing approximately 1.1 billion yuan to scams a 70% increase from the previous year. A significant portion of these losses was linked to cryptocurrency-related fraud, where criminals trick victims into converting their money into digital assets, making it harder to track and recover. Additionally, hackers and phishing schemes have led to the unauthorised withdrawal of funds from digital wallets, further amplifying concerns.
While the Monetary Authority of Singapore regulates cryptocurrency activities under the Payment Services Act, many digital exchanges and wallets operate outside its jurisdiction. Sun noted that even experienced investors have fallen prey to these fraudulent schemes, highlighting the dangers of the unregulated crypto space. This rising trend has furled discussions about whether harsher punishments should be imposed on fraudsters.
Jurong GRC MP Dr. Tan Yew Meng criticised the current legal framework, arguing that penalties for financial fraud are too lenient compared to other offences. He pointed out that while illegal moneylenders handling $10,000 can face physical punishment, fraudsters who steal significantly larger amounts often escape severe consequences. He proposed that caning should be introduced for serious fraud cases, reflecting growing concerns among lawmakers about the increasing number of crypto scams.
Sun stated that the government is in the process of reviewing fraud-related legislation and considering stricter penalties for offenders. She revealed that more than 80% of scam victims willingly transferred their money, often deceived by impersonators, fake authorities, or fraudulent promises of high returns.
In response to these challenges, the Singaporean government has enacted the Anti-Fraud Protection Bill, which gives authorities the power to freeze assets belonging to victims if they ignore fraud warnings. The law is set to take effect this year as part of efforts to curb financial crimes.
Although no concrete policy changes have been introduced yet, reports suggest that new regulations could be implemented soon. Despite the surge in scams, cryptocurrency adoption continues to grow in Singapore, with the central bank doubling the number of licensed crypto firms in 2024 to enhance market stability.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
