Sun Xueling, the Minister of Home Affairs in Singapore, warned citizens to avoid crypto in a recent budget hearing. The country has a reputation for industry friendliness, but sophisticated crypto scams are turning some politicians’ opinions.
Sun mostly framed her arguments in terms of defending citizens, but other figures were far harsher. In a Monday speech, MP Tan Wu Meng advocated for caning crypto fraudsters. Nonetheless, it may be premature to say the nation is changing policy altogether.
Could Singapore Crack Down on Crypto?
Over the last few years, Singapore has gathered a reputation for being a particularly crypto-friendly jurisdiction. Last year, the city-state led Asia in crypto business licenses, and it was declared “the world’s most crypto-friendly country” this January.
However, according to local reports, Singapore’s Interior Minister is now giving harsh warnings about crypto.
“Our advice to the public is to stay away from cryptocurrencies. The risk of getting burned is high, and if you become a victim of a scam, the chances of getting any of your money back are slim,” claimed Sun Xueling, who is both the Minister of Home Affairs and Social and Family Development.
Sun made these comments in a recent committee hearing on the Ministry of Home Affairs’ expenditure budget. She claimed that crypto scams made up one-quarter of total fraud losses in Singapore last year.
The minister added that these sophisticated operations target novices and crypto users alike and that the country is determined to fight back.
Other government officials took a much harsher stance. In a speech this Monday, MP Tan Wu Meng claimed that Singapore is too soft on crypto fraudsters. To deter future offenses, he claimed, these criminals should be subject to caning, depending on the severity of their offenses.
How is this possible in a country that’s ostensibly leading the blockchain revolution? This is currently the biggest question.
Crypto Scammers On the Rise
Although Singapore has proactively worked on positive crypto policies over the last few years, it’s maintained a few limits. For example, Worldcoin launched in the country in late 2023, but Singaporean law enforcement began investigating the firm for possible finance crimes less than a year later.
Earlier in 2025, it also outlawed Polymarket, classifying it as a gambling platform.
Sun couched her own arguments in simple terms: crypto scams are becoming much more sophisticated. “The days when you could easily spot a scam call or email based on the other party’s strong foreign accent or poor English are gone,” she said.
Also, in Singapore, 80% of the money lost to crypto fraud was willingly handed over by the victims themselves. The state needs to adapt, too.
No new policy is firmly set in stone yet, but this provides a window into Singapore’s attitudes on crypto crimes. Based on this current information, it seems a little premature to claim that the country might totally reverse its track record of industry friendliness.
Sun urged citizens to use various government anti-fraud resources to protect themselves but didn’t endorse specific legislation. However, local media claimed that future punitive legislation is coming, and Tan Wu Meng isn’t alone in supporting it.
