The dangers of money laundering and other associated crimes have Singaporean authorities stopping the use of crypto for gambling.
Singapore’s parliament has passed amendments to the Casino Control Act, designed to further enhance the effectiveness of the country’s casino regulatory regime and its safeguards for the more vulnerable sections of its population.
In tabling the changes, outlined in detail in a speech made by a government minister, Singapore continues its “fine balance” between reaping economic benefits from Integrated Resorts (IRs) and minimizing gambling-related harms.
Strengthening Regulatory Supervision
The amendments make some key changes to Singapore’s regulatory framework for casinos. More powers will be given to the GRA to regulate more forms of gambling activities within casinos, including betting and lotteries. This will prevent the regulatory regime from becoming obsolete in the light of potential new offerings by casino operators.
Singapore will allow its two casinos to conduct cashless gaming under changes made to the Casino Control Act, but will not permit the use of crypto, CNA reports https://t.co/aXiop0Tcx6
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Divestments and acquisitions with respect to primary shareholders of casino operators will be sanctioned by the Minister for Home Affairs. The move is supposed to align IRs with the strategic objectives of the government. The Gambling Regulatory Authority, for its part, will take decisions concerning controllers and substantial shareholders with the aim of thwarting undesirable criminal influence in casinos.
The amendments being implemented by the Singaporean parliament cover digital currency. For one, cryptocurrency will not be licensed by GRA for use as casino chips. Officials cited money laundering risks as the primary reason for this ban.
As of today, the market cap of cryptocurrencies stood at $1.9 trillion. Chart: TradingView.com
The amendments also provide for stiffer penalties for specified infringements. Certain infractions which attracted only monetary fines are now subject to imprisonment, bringing this Casino Control Act in line with the recently passed Gambling Control Act.
Protecting Vulnerable Groups
One of the major focuses of the revisions is to further strengthen the safeguards for vulnerable persons. The NCPG shall have greater leeway in dealing with exclusion orders and visit limits.
It has also enhanced the punishment for minors who try to enter casinos using false proof of age. Fines for the offense have been increased from $1,000 to $10,000, reflecting how seriously these infractions are taken by the authorities.
However the government claims that existing social safeguards such as orders for exclusion and limits on visits despite increased measures have proven their worth. The probable pathological and so-called “problem gambling” rates among Singapore residents remain low and stable at about 1%.
Balancing Economic Growth And Social Responsibility
The Singapore crypto and casino regulation system is always under development because the city-state is trying to find the best balance in maximizing economic returns from its IRs, while simultaneously trying to minimize their associated social harms.
Recently, the government updated the casino tax rates to include a multi-tiered system, one which features higher rates than previously existed. This balances competitiveness with the need for revenue generation.
Featured image from CNN, chart from TradingView