Singapore Home Affairs Minister, Sun Xueling, Caution Citizens Against Crypto Following Rise in Scams
In a recent budget hearing, Sun Xueling, the Minister of Home Affairs in Singapore, issued a stern warning to citizens about the risks associated with cryptocurrency. Despite Singapore's reputation for being crypto-friendly, the surge in sophisticated scams has prompted a shift in some politicians' attitudes.
While Sun emphasized the need to safeguard citizens, other officials expressed more severe views. MP Tan Wu Meng proposed harsh penalties, including caning, for crypto fraudsters during a speech on Monday. However, it remains uncertain whether Singapore will implement significant policy changes across the board.
Is Singapore About to Clamp Down on Crypto?
In recent years, Singapore has been lauded for its accommodating stance towards cryptocurrencies. The city-state topped Asia in acquiring crypto business licenses last year and was hailed as the "world's most crypto-friendly country" in January.
Nevertheless, reports indicate a change in tone from Singapore's Interior Minister regarding cryptocurrencies.
Sun Xueling cautioned the public against crypto involvement, citing the high risk of financial losses and the slim chances of recovering funds in the event of scams. Speaking in her capacity as both the Minister of Home Affairs and Social and Family Development, Sun highlighted that crypto scams contributed to a quarter of total fraud losses in Singapore last year.
Despite the Minister's warnings, the stance of other officials has been even more stringent. MP Tan Wu Meng's call for harsh repercussions has raised questions about Singapore's position as a leader in blockchain technology.
The Rise of Crypto Scams
Although Singapore has previously been proactive in fostering positive crypto regulatory frameworks, recent developments have introduced limitations. For instance, despite being launched in late 2023, Worldcoin faced investigations by Singaporean authorities for potential financial crimes within a year. In 2025, the government outlawed Polymarket, categorizing it as a gambling platform.
Sun emphasized the growing sophistication of crypto scams, warning that victims are increasingly falling prey to these elaborate schemes. Notably, 80% of funds lost to crypto fraud in Singapore were willingly handed over by victims, indicating a need for increased vigilance and adaptation by the authorities.
While concrete policy changes are pending, insights from these developments shed light on Singapore's stance towards combating crypto crimes. Despite hints of forthcoming regulatory measures, Sun advised citizens to leverage government anti-fraud resources for protection. As discussions surrounding punitive legislation gain momentum, Singapore may signal a shift in its approach to maintaining industry-friendly policies.