Fraud in Crypto? You Could Be Fined, Imprisoned, and Even Caned

Singapore Mulls Caning as Punishment for Crypto Fraudsters

Singaporean authorities are exploring the possibility of introducing caning as a penalty for crypto-related financial crimes in an effort to curb the growing wave of digital asset scams.

Minister of State for Home Affairs Sun Xueling recently spoke in Parliament about the increasing prevalence of cryptocurrency fraud, emphasizing the need for stronger deterrents. She noted that officials are reviewing whether harsher penalties, including corporal punishment, should be implemented to discourage scammers.

During a parliamentary debate on Tuesday, Xueling revealed that nearly a quarter of all fraud-related financial losses in Singapore last year stemmed from crypto scams. Many victims were deceived into converting their money into digital assets, only to have their funds stolen through phishing attacks or malware schemes.

Jurong GRC Member of Parliament Tan Wu Meng argued that Singapore’s fraud laws are too lenient. He proposed amendments that would make caning a mandatory penalty for severe financial crimes. Tan pointed out that loan shark enforcers handling $10,000 in illegal funds already face caning, yet crypto scammers who steal over $100,000 do not.

Sun acknowledged that fraud convictions in Singapore already result in significant jail time but confirmed that authorities are reviewing whether additional penalties, including caning, could serve as a stronger deterrent against financial crimes.

To address the surge in digital asset fraud, Singapore recently passed the Protection from Scams Act, which grants police the authority to temporarily restrict transactions linked to suspected scam activity. This law is set to take effect later this year.

Caning remains a controversial but legally sanctioned form of punishment in Singapore, typically applied to violent and drug-related offenses. If extended to financial crimes, it would represent a notable shift in the country’s approach to white-collar offenses.

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