Singapore has emerged as a global hub for cryptocurrency innovation, boasting a robust regulatory framework designed to foster growth while mitigating risks. This guide explores the latest compliance requirements, licensing procedures, and key updates shaping Singapore’s crypto landscape in 2025.
Is Cryptocurrency Legal in Singapore?
Cryptocurrency is not legal tender in Singapore (the Singapore Dollar remains the official currency). However, it is recognized as a legitimate alternative payment method under the Payment Services Act 2019 (PS Act). The Monetary Authority of Singapore (MAS) oversees crypto regulations, ensuring transparency and consumer protection.
👉 Discover how Singapore’s regulations compare globally
Who Regulates Cryptocurrency in Singapore?
The MAS is the primary regulator, enforcing rules for Digital Payment Token (DPT) service providers through:
- PS Act: Licensing and operational guidelines.
- AML/CFT Notices: Anti-money laundering and counter-terrorism financing requirements.
- Consumer Protection Guidelines: Risk disclosure and marketing restrictions.
Key Regulations for Crypto Businesses
1. Licensing Requirements
DPT providers must obtain one of three licenses:
Standard Payment Institution (SPI): For smaller-scale operations.
- Minimum capital: SGD 100,000 (~USD 73,740).
Major Payment Institution (MPI): For high-volume transactions.
- Minimum capital: SGD 250,000 (~USD 184,000).
- Money-Changing License: For fiat exchange services only.
2. AML/CFT Compliance
- Customer Due Diligence (CDD): Verify user identities and monitor transactions.
- Travel Rule: Share originator/beneficiary data for transfers exceeding SGD 1,500 (~USD 1,106).
- Sanctions Screening: Check against global watchlists (OFAC, UN, etc.).
3. Marketing Restrictions
MAS prohibits:
- Public advertisements (e.g., billboards, social media influencers).
- Trivializing crypto risks.
- Promoting derivatives as "unregulated alternatives."
👉 Explore compliant marketing strategies
2024–2025 Regulatory Updates
- Expanded PS Act: Stricter rules for custodial services and cross-border transfers.
- Enhanced Consumer Protection: Mandatory risk disclosures and conflict-of-interest policies.
- Travel Rule Enforcement: Full adoption of FATF standards for DPT transactions.
Travel Rule Compliance Solutions
Businesses must integrate Travel Rule protocols (e.g., TRP, GTR, CODE) to automate data sharing. Key features:
- VASP Attribution: Identify counterparties.
- Wallet Scoring: Flag high-risk wallets.
- Global Sanctions Screening: Real-time checks.
FAQ
1. Is crypto taxed in Singapore?
- No capital gains tax, but businesses pay corporate income tax on crypto earnings.
2. Can individuals trade crypto freely?
- Yes, but MAS advises understanding risks before investing.
3. What’s the penalty for non-compliance?
- Fines up to SGD 1 million and/or license revocation.
4. Are DeFi platforms regulated?
- MAS is evaluating DeFi under existing frameworks; expect guidelines by late 2025.
Singapore’s proactive approach balances innovation with stability, making it a top destination for crypto enterprises. Stay updated with MAS announcements to navigate this dynamic landscape effectively.