Singapore Puts Crypto on Ice in Casinos, Citing Money Laundering Risks 

Key Takeaways

• Singapore has “no intention” of letting crypto be used in casinos.
• Most countries worldwide operate in a “grey area” of crypto gambling.
• Malta permits casinos to explore cryptocurrency usage under specific conditions.

Under new changes to its Casino Control Act, Singapore said on Tuesday, Sept. 10, that it would welcome cashless bets but not permit using cryptocurrencies in casinos. 

Singapore’s Minister of State for Home Affairs and for Social and Family Development, Sun Xueling, said the country’s  Gambling Regulation Authority (GRA) had “no intention” to let crypto be used as casino chips. 

Singapore’s Money Laundering Concerns

Sun said crypto would not be allowed within Singapore casinos due to its “money laundering risks.”

The news comes amid a tweak to the Casino Control Act, which has now allowed the country’s two casinos to offer cashless gaming. 

Cashless gaming means players can place bets at machines and gaming tables using virtual credits—such as an e-wallet. 

“The intent of this is to future-proof the regime to allow for new modes such as cashless gaming,” Sun said. 

Australia Bans Crypto From Online Casinos

In June, much like Singapore, the Australian government  banned the use of cryptocurrency and credit cards for online gambling and casinos. 

The crackdown followed several calls to impose stricter regulation on gambling in the country. 

In 2023, a parliamentary committee called for banning gambling ads during sports games. 

ABC News shared findings from H2 Gaming Capital  that Australia spends 20% more on online gambling than anywhere else in the world. 

The restrictions on crypto in online casinos included a fine of up to $155,000. 

The Grey Area of Crypto Gambling

In most countries, unregulated crypto gambling operates as a grey area. 

In the US, for example, citizens can bet with crypto at several offshore casinos. 

However, it is illegal in most states for a casino in the US to operate crypto-only casino sites. 

Wyoming became the first state to recognize using crypto as an approved payment method for online sports betting  in 2021. 

In the UK, most online casinos that use crypto and are unregulated are illegal due to strict regulations from the Gambling Commission (UKGC) . One of the primary concerns surrounding cryptocurrency is its use for money laundering. 

The UKGC requires all licensed operators to have strict anti-money laundering policies in place. Traditional payment methods like bank transfers or credit cards are easier to monitor and regulate, but crypto transactions are harder to track, making it challenging to comply with these regulations.

This is a far cry away from Malta, which permits casinos to explore cryptocurrency usage under specific conditions.

In 2018, the Malta Gaming Authority launched  a sandbox framework to allow the use of virtual financial assets and cryptocurrencies in the gaming sector under strict supervision.

The Rise of Crypto Prediction Markets

The crypto prediction market has continued to rise in popularity over the past few years, allowing users to bet on everything and anything.

Polymarket has stood out as one of the leading decentralized prediction markets of the moment, with users betting hundreds of thousands of dollars on real-life events. In July, Polymarket reached a record $472.8 million in trading volume, according to Dune Analytics. 

The rise in user numbers is primarily fueled by heightened interest in the US presidential elections. Bettors have wagered over $850 million on the outcome of Donald Trump vs. Kamala Harris. The two Presidential hopefuls were neck-and-neck  in the polls at press time.

However, its future remains uncertain. US lawmakers have launched a collective effort to tackle election gambling following the growth of platforms like Polymarket. Additionally, the US Commodities Futures Trading Commission (CFTC) is looking to effectively ban prediction markets.

About the Author

Kurt Robson

Kurt Robson is a London-based reporter at CCN with a diverse background across several prominent news outlets. Having transitioned into the world of technology journalism several years ago, Kurt has developed a keen fascination with all things AI. Kurt’s reporting blends a passion for innovation with a commitment to delivering insightful, accurate and engaging stories on the cutting edge of technology.

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