Singapore has recently taken a series of stringent measures in cryptocurrency regulation, especially in terms of money laundering and token compliance in casinos. These measures not only reflect Singapore's firm stance as a financial center to ensure compliance operations, but also enhance global awareness of cryptocurrency regulation.

Casinos ban cryptocurrencies

Singapore has taken the lead in restricting the use of cryptocurrencies in casinos, explicitly prohibiting casinos from accepting any form of cryptocurrency as a means of payment and gradually going cashless. The main reason for this decision is that cryptocurrencies may facilitate other illegal activities such as money laundering.

It is reported that profits in the crypto gambling market almost doubled to more than $70 billion in the first half of 2024, and are expected to reach a staggering $150 billion by 2030. In response, Singapore revised the (Casino Control Act) to approve cashless gambling transactions in its two casinos while prohibiting the use of cryptocurrencies for gaming. As its Minister of Home Affairs said: "The Singapore government does not allow cryptocurrencies to be used as chips for casino gambling because it poses a risk of money laundering."

Singapore's regulators pointed out that although cryptocurrencies are accepted by more countries around the world, due to their decentralized and anonymous nature, cryptocurrencies have gradually become a tool for casinos to make illegal funds. Criminals use online casinos as a channel to use digital currencies to cover the source of illegal funds. Therefore, Singapore's shift to cashless transactions in casinos and gaming industries meets the need to improve security and reduce the handling of physical cash.

Fight against world currency

In addition to banning the use of cryptocurrencies in the gambling industry, Singapore has also focused on cracking down on illegal activities related to Worldcoin. The Monetary Authority of Singapore (MAS) has launched a comprehensive investigation into illegal transactions in Worldcoin accounts and tokens, especially in the use of emerging technologies such as iris scanning for identity verification and issuance of cryptocurrencies by Worldcoin.

Currently, seven people have been found to have violated the (Payment Services Act) by providing services to buy or sell related accounts. In response, MAS Chairman Yong warned its citizens not to sell their Worldcoin accounts or tokens. Any attempt to bypass regulation and use digital identities for illegal activities will be severely cracked down.

It is worth noting that this is not the first time that Worldcoin has violated laws and regulations around the world. Regulators in Hong Kong and Colombia have claimed that Worldcoin has been violating local data privacy laws. This not only reveals the serious crisis behind the abuse of digital identities, but also highlights the urgency of improving regulatory policies and technical means. With the booming digital economy, how to ensure the safe use of digital identities and prevent them from becoming a tool for financial crimes has become a pressing issue worldwide.

The series of measures taken by the Singapore government are a proactive response to potential risks and are conducive to maintaining the security and stability of the financial system, but they may also trigger negative effects. First, banning casinos from using cryptocurrencies may affect the revenue model of related companies, prompting them to seek other payment solutions. Second, the investigation into WorldCoin will also trigger a broader regulatory review, affecting the operations of other cryptocurrency projects.

In addition, these policies may shake Singapore's position in the global cryptocurrency field. As a financial center, Singapore has been working hard to attract blockchain and cryptocurrency-related companies, but if the regulatory environment becomes stricter, some companies are likely to turn to other more relaxed markets.

Summarize

From banning casinos from using cryptocurrencies to investigating WorldCoin, Singapore is taking practical actions to combat illegal financial activities and ensure the healthy development of the cryptocurrency industry. Although these measures may bring short-term pressure to some cryptocurrency projects, they will help shape a more transparent and secure financial ecosystem in the long run.

In the future, Singapore may further strengthen its regulation of cryptocurrencies and provide a reference for the compliance development of cryptocurrencies worldwide. As the world's understanding of cryptocurrencies continues to deepen and the regulatory system continues to improve, we have reason to believe that a more standardized, transparent and healthy financial market is coming to us.