Singapore Gambling Expert Explains Reasons Behind the Regulator’s Opposition to Cryptocurrency in Land-Based Gaming Industry

Gambling.Re interviews Lau Kok Keng, Partner at Rajah & Tann Asia, about the reasons behind the Gambling Regulatory Authority's (GRA) opposition to legalizing cryptocurrency in Singapore.

The Gambling Regulatory Authority (GRA) in Singapore has no plans to legalize the use of cryptocurrency in the land-based gaming industry due to the potential risks associated with virtual currencies. In an exclusive interview with Lau Kok Keng, a Partner at Rajah & Tann Asia and an expert in the gambling legal field, he explained to Gambling.Re the potential reasons behind the GRA's opposition to this move.

According to Lau, the GRA's opposition may be due to two primary reasons. The first reason is the speculative and volatile nature of cryptocurrency. Because virtual currencies lack regulation by a centralized fiat authority, their prices are entirely influenced by the forces of market demand and supply. This can lead to potential disputes between operators and players, as well as make it challenging to levy taxes on gambling revenue. The second reason is likely the decentralization of cryptocurrencies which makes it difficult for law enforcement authorities to trace the use of such currencies and in turn, its potential links to criminal and illicit activities such as money laundering and terrorism financing.

While legalizing the use of cryptocurrency in the gambling industry may have economic benefits, such as enhancing the flow of gambling transactions, Lau mentions that Singapore prioritizes minimizing and controlling social ills and criminal activities in its gambling landscape. Therefore, according to Lau, it is unlikely that the GRA will adopt a more liberal approach towards cryptocurrencies anytime soon.

When discussing the influence of other countries' legislation on Singapore's approach to regulating cryptocurrency in the gambling industry, Lau notes that Singapore typically looks towards policies and regulatory approaches in more mature legal jurisdictions. In the case of the GRA's prohibition of cryptocurrency, Lau observes that it is consistent with the approaches adopted in Australia and Japan. He further acknowledges that Singapore prefers a more conservative and restrictive approach towards gambling regulation and is unlikely to take guidance from licensed online gambling jurisdictions such as the Isle of Man and Malta.