Authorities Crack Down: Crypto Fraudsters Could Be Caned, Jailed, and Fined

Singapore Weighs Caning as Punishment for Crypto Fraudsters

Singaporean authorities are considering adding caning to the penalties for crypto-related fraud as they look to crack down on financial crimes and better protect citizens from scams.

With digital asset scams on the rise, fraudsters are increasingly using cryptocurrencies to evade traditional financial oversight. Minister of State for Home Affairs Sun Xueling stated that the government is evaluating harsher punishments—including corporal punishment—to deter offenders.

During a parliamentary budget debate on Tuesday, Xueling revealed that crypto scams made up nearly a quarter of all fraud-related financial losses in the country last year. Criminals have been deceiving victims into converting money into digital assets before draining their funds through phishing attacks and malware schemes.

Jurong GRC Member of Parliament Tan Wu Meng has pushed for stricter punishments, arguing that fraudsters and money mules often face lenient penalties. He proposed legal amendments to enforce mandatory caning for severe financial crimes.

Tan pointed out that under current laws, loan shark runners managing $10,000 in illicit funds are subject to caning, while fraudsters stealing amounts over $100,000 do not face the same physical punishment. Sun acknowledged that fraud convictions already result in jail time but confirmed that caning is being considered as an additional deterrent for serious financial crimes.

To combat the growing threat, Singapore recently passed the Protection from Scams Act, granting authorities the power to temporarily block transactions linked to suspected scams. The new law is expected to take effect later this year.

Caning, a strict form of corporal punishment, is used in Singapore for crimes such as drug trafficking and violent offenses. If implemented, this policy could set a precedent for financial crime penalties in the country.