Singapore Weighs Harsher Penalties for Crypto Fraud, Including Caning
Singapore is considering adding caning to its list of punishments for financial criminals as authorities seek stronger deterrents against the rising tide of cryptocurrency scams.
Minister of State for Home Affairs Sun Xueling recently addressed Parliament, highlighting concerns over the growing role of digital assets in financial fraud. She stated that the government is actively reviewing whether tougher penalties, including corporal punishment, should be introduced to discourage fraudsters.
During a parliamentary budget debate on Tuesday, Xueling revealed that cryptocurrency scams accounted for nearly 25% of all financial fraud losses in Singapore last year. Many criminals used phishing attacks, malware, and deceptive investment schemes to trick victims into transferring their money into digital assets before stealing their funds.
Jurong GRC Member of Parliament Tan Wu Meng argued that Singapore’s current penalties for financial crimes are too lenient and proposed legal amendments to enforce mandatory caning for severe fraud cases. He pointed out that individuals assisting loan sharks in handling $10,000 in illicit funds can be caned, while crypto fraudsters who steal hundreds of thousands of dollars are not subject to the same punishment.
Sun acknowledged that financial crimes already carry significant jail time in Singapore but confirmed that authorities are assessing whether adding caning to the legal framework would serve as a more effective deterrent.
To further combat scams, Singapore recently passed the Protection from Scams Act, which grants police the power to temporarily block transactions suspected to be linked to fraudulent activities. This law is expected to be implemented later this year.
Caning, a form of corporal punishment still legally enforced in Singapore, is typically reserved for violent crimes and drug offenses. Expanding its use to financial crimes would represent a major shift in the country’s approach to fraud enforcement.
