Singapore Considers Corporal Punishment for Crypto Fraudsters

In a bid to combat the rising wave of cryptocurrency fraud, Singaporean authorities are exploring stricter penalties, including caning, for convicted offenders.

Minister of State for Home Affairs Sun Xueling recently addressed Parliament, highlighting concerns over the growing use of digital assets in financial scams. She stated that the government is evaluating whether harsher punishments, such as corporal punishment, could serve as a stronger deterrent.

During a parliamentary debate on Tuesday, Xueling noted that cryptocurrency-related fraud accounted for nearly 25% of all financial crime losses last year. Many scammers trick victims into converting money into crypto assets before draining their funds through phishing and malware schemes.

Member of Parliament Tan Wu Meng (Jurong GRC) argued that Singapore’s current penalties for fraud and money laundering are insufficient. He proposed amending laws to introduce mandatory caning for severe financial crimes, emphasizing that loan shark enforcers dealing with $10,000 in illegal funds are already subject to caning, whereas crypto fraudsters stealing $100,000 or more face only financial and custodial penalties.

Sun acknowledged that fraud cases already carry significant jail sentences but confirmed that authorities are reviewing whether caning should be included in the punishment framework for financial criminals.

To address rising scams, Singapore has also introduced the Protection from Scams Act, which will give law enforcement the authority to temporarily block transactions linked to suspected fraud. The law is expected to be implemented later this year.

Caning, a controversial but longstanding form of corporal punishment in Singapore, is typically reserved for violent offenses and drug-related crimes. If applied to financial crimes, it would mark a significant shift in the country’s legal stance on white-collar offenses.