Singapore Warns Public to Stay Away from Crypto

Singapore, once hailed as a global leader in crypto adoption, is now rethinking its stance due to a surge in sophisticated scams.

Last year, the city-state led Asia in issuing crypto business licenses and was named "the world’s most crypto-friendly country."

However, in a recent budget hearing, Interior Minister sounded a stark warning about the growing threat of crypto-related fraud, which accounted for a quarter of all fraud losses in Singapore last year.

Sun Xueling, who is both the Minister of Home Affairs and Social and Family Development, claimed:

“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.”

Sun cautioned citizens against investing in crypto, noting that these scams are targeting both newcomers and experienced users.

As the country works to combat these fraudulent activities, some policymakers are shifting their views on the crypto industry.

Harsher Penalties like Caning in the Horizon?

While Sun focused her comments on protecting citizens, other figures have taken a more stringent approach.

In a speech on Monday, MP Tan Wu Meng argued that Singapore is too lenient on crypto fraudsters.

He proposed amending the law to enforce mandatory caning for those convicted of severe crypto crimes, while allowing courts discretion for less serious offenses.

Tan raised the question of why a loan shark caught with $10,000 in stolen money could face caning, but a fraudster or money mule defrauding $100,000 would escape such punishment.

However, it may be too early to conclude that Singapore is shifting its policy on crypto regulation.

Singapore Cracks Down on Crypto as Scams Rise

While Singapore has taken a progressive stance on crypto policies in recent years, it has also implemented certain restrictions.

Earlier in 2025, for example, the government banned Polymarket, classifying it as a gambling platform.

Sun framed her concerns around the increasing sophistication of crypto scams, noting that in Singapore, 80% of the money lost to crypto fraud was voluntarily handed over by the victims themselves.

She said:

“The days when you could easily spot a scam call or email based on the other party’s strong foreign accent or poor English are gone. Scammers are now using artificial intelligence and our online information to make them more credible and less easily detected.”

This highlights a need for the state to adapt its approach.

Although no definitive policy changes have been confirmed yet, these discussions offer valuable insight into Singapore's evolving stance on crypto crimes.

While it may be premature to suggest a complete shift away from its crypto-friendly reputation, the government is clearly taking steps to address the growing threat.

Sun urged the public to make use of resources like the ScamShield anti-fraud package and the 1799 hotline for assistance.

She concluded:

"Let us take action together to prevent fraud, fight fraud, protect ourselves and take care of our loved ones."

However, local reports indicate that more punitive legislation may be on the horizon, with MP Tan Wu Meng and others supporting stronger measures.