- Singapore’s Ministry of Home Affairs has proposed implementing caning as a punitive measure for severe cryptocurrency fraud offenses
- This initiative aims to deter the escalating number of crypto-related scams, which have resulted in substantial financial losses
- The proposal reflects the government’s commitment to safeguarding citizens against sophisticated financial crimes
In response to the alarming rise in cryptocurrency fraud, Singapore’s Ministry of Home Affairs is considering the introduction of caning as a penalty for individuals convicted of serious crypto-related scams. This measure seeks to enhance deterrence and protect the public from increasingly sophisticated financial crimes. In a recent parliamentary session, Minister of State for Home Affairs, Sun Xueling, emphasized the government’s determination to combat fraud, including crypto fraud.
Escalating Cryptocurrency Scams
The prevalence of cryptocurrency scams in Singapore has surged in the last year or so, with recent reports indicating that such schemes accounted for nearly a quarter of the total money lost to scams in 2024. According to local news outlet Lianhe Zaobao, the Singapore Police Force (SPF) recently revealed that the amount lost to scams increased by 70% to S$1.1 billion (US$822 million) in 2024. This significant financial impact has prompted authorities to explore more stringent punitive measures in an attempt to deter would-be criminals.
Xueling emphasized the government’s determination to combat fraud during a parliamentary session on March 4, highlighting the complexity and international nature of these scams. She noted that many fraudsters operate from overseas, making enforcement challenging, and revealed that post-crime resolution is often hard to achieve:
Our advice to the public is to stay away from cryptocurrencies. The risk of getting burned is high, and if you become a victim of a scam, the chances of getting any of your money back are slim.
Xueling also indicated that the Ministry is considering the inclusion of certain fraud-related offenses under crimes punishable by caning, something that currently only applies to more serious crimes.
Parliamentary Advocacy for Stricter Punishments
The call for harsher penalties has been echoed within the Parliament. Jurong GRC MP, Dr. Tan Yew Meng, argued that current punishments are insufficient, especially when compared to penalties for other financial crimes.
He pointed out that under the Moneylenders Act, individuals assisting loan sharks can face fines and caning, whereas fraudsters or money mules involved in more substantial sums may not. Dr. Tan questioned, “A loan shark who takes $10,000 from a victim will be caned, but a fraudster or money mule who takes $100,000 from a victim’s hard-earned money will not be caned.” He urged the Ministry to consider caning for serious fraud offenses to enhance deterrence.
Public Awareness and Preventive Measures
Beyond punitive actions, the government is intensifying efforts to educate the public on the risks associated with cryptocurrency investments. Authorities have observed various tactics employed by scammers, including phishing websites and impersonation of legitimate entities.
The SPF and Cyber Security Agency of Singapore (CSA) have issued advisories urging individuals to exercise caution and remain vigilant against such schemes. They have also advised the public to verify the authenticity of investment opportunities and be wary of unsolicited offers promising high returns.
