Singapore’s Gambling Regulatory Authority to crack down on the use of crypto assets

The Gambling Regulatory Authority has announced that it does not have plans to legalize crypto use within the gaming industry. The regulatory body is currently exploring how cryptocurrencies can be used in the video gaming and social gaming industry.

Singapore regulator to crack down on crypto usage

The Gambling Regulatory Authority (GRA) is the new regulatory body overseeing the country’s gaming industry. The regulator now appears to be continuing with the general opposition in Singapore about using cryptocurrencies in society.

While speaking to a regulatory gathering in Sydney, the general counsel of GRA, Albert Yeo, said that the crypto sector was among the key issues the regulator was monitoring. The regulator was largely interested in the rate at which crypto is used in new technologies.

While the use of cryptocurrencies has increased in Singapore and globally, the casino industry is yet to integrate support for these digital assets. There are currently zero plans to integrate cryptocurrencies within two integrated resorts across Singapore: Marina Bay Sands and Resorts World Sentosa.

Yeo was speaking at the Regulating the Game conference, saying that in the casino industry, the adoption of cryptocurrencies remained notably low. He opined that the slow adoption was because of the volatility of the crypto assets, which made them less suitable as a revenue stream.

The general counsel added that the regulatory body was focused on ensuring that cryptocurrencies do not enter the casino industry. Yeo added that if people started entertaining the use of digital assets in casinos, it would be difficult to stop, resulting in a significant level of risk in the sector.

“I’m not sure if there is any legislative framework that would allow us to do it anyway, but we are looking into it and seeing where it is creeping in and making sure it doesn’t invade the casinos in Singapore,” Yeo added.

Monitoring the play-to-earn gaming space

The GRA was launched last year, and at the time, the goal was to replace the Casino Regulator Authority (CRA). The objective was to monitor the gambling industry in Singapore. The GRA is also paying close attention to the fast-growing play-to-earn gaming industry.

Yeo pointed out one of the leading online products, Axie Infinity. Axie Infinity is one of the largest blockchain-based games where traders can earn non-fungible tokens (NFTs) and rewards that can be converted to real-life income. However, Yeo said there were concerns about whether the earned amount was money, money equivalent, or anything with value.

The actions being taken by GRA reflect the broader regulatory framework for the cryptocurrency industry. Regulators in the country have banned advertising to cryptocurrency exchanges with the argument that these promotions target investors with limited knowledge. The Monetary Authority of Singapore issued a warning last year about the cryptocurrency industry after the collapse of FTX, reminding investors of the risk of interacting with crypto products.