Casinos Block Crypto Use Amid Money Laundering Fears

Singapore crypto ban has been implemented in the recent changes to the Casino Control Act. The new Act allows for cashless betting. However, it has banned the use of cryptocurrencies in casinos. The new regulations, which were announced on September 10, aim to mitigate the risks of money laundering associated with cryptocurrencies. 

The Minister of State for Home Affairs, Sun Xueling, has stated that the Gambling Regulatory Authority has no intention of permitting cryptocurrencies as casino chips. Although the government has allowed cashless gaming, the government maintains its position on financial integrity. The crypto ban further reinforces the focus on security within the gambling industry.

Singapore Crypto Ban In Casinos

The updated Casino Control Act explicitly imposes a Singapore crypto ban in casinos. The decision arises from concerns about potential money laundering in casinos using cryptocurrencies. 

Sun Xueling emphasized this position in an official statement, asserting, “The Gambling Regulatory Authority has no intention of allowing cryptocurrency as casino chips due to money laundering risks.”

Although the government supports cashless gaming, with virtual credits now allowed at tables, the crypto ban shows its commitment to strict financial oversight.

Money Laundering Risks Behind Crypto Ban

Singapore crypto ban in casinos primarily stems from its concerns over money laundering. Recent global incidents show how vulnerable cryptocurrencies are to facilitating illegal financial activities.

In 2023, authorities uncovered a money laundering syndicate involving more than S$1 billion in assets linked to illegal online gambling and organized crime. Seized assets included luxury cars, cash, real estate, and cryptocurrency. This included S$230,000 in Tether, showing how crypto plays a role in laundering illicit gains.

The June 2024 Money Laundering National Risk Assessment by the Monetary Authority of Singapore (MAS) highlighted the role of cryptocurrency in financial crimes. The report highlighted that the banking sector remains the highest-risk area.

Meanwhile, cryptocurrencies are increasingly being used for illegal activities which has led to huge numbers of crypto fraud losses. A recent FBI report showed that the crypto frauds increased significantly last year, with total losses of around $5.6 billion.

This trend is particularly evident in casinos, where the anonymity of digital currencies makes them more susceptible to misuse. Digital currencies can bypass traditional financial controls, which led authorities to restrict their use in casinos to reduce money laundering risks.

Cashless Gaming Takes Center Stage

As part of modernization efforts, Singapore introduced cashless gaming in its two major casinos, Marina Bay Sands and Resorts World Sentosa. This change allows players to place bets using virtual credits from e-wallets or cashless gaming accounts, which streamlines the gambling experience. 

Sun Xueling explained that the goal is to “future-proof” the casino industry. This approach enables new gaming modes while reducing the risks tied to handling physical cash. Cashless gaming boosts security, cuts operational costs, and offers greater convenience for casino patrons.

Impact on Singapore’s Casino Industry

The crypto ban and the shift to cashless gaming will impact the casino industry. Globally, cryptocurrencies have been linked to money laundering and other illegal activities. As a result, countries like the U.S. and Canada have imposed strict AML regulations on crypto exchanges and convicted individuals going against the regulations.

Strict regulatory measures, including the Singapore crypto ban in casinos will strengthen its position as a leader in financial integrity. Moreover, cashless gaming offers a more secure and efficient system. This move could attract younger, tech-oriented players. At the same time, it helps safeguard the industry against financial crimes.

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Coingape Staff

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