Singapore has solidified its position as a globally recognized hub for digital asset innovation. The nation combines robust economic foundations with clear, forward-thinking regulatory frameworks, making it an attractive base for cryptocurrency businesses. This environment fosters security and growth, appealing to both companies and investors seeking a regulated yet dynamic market.
The Monetary Authority of Singapore (MAS) oversees the sector through the Payment Services Act (PSA). Companies must obtain a license to operate legally, ensuring they meet stringent standards for security, transparency, and consumer protection. This regulatory rigor helps build trust and promotes long-term industry stability.
Understanding Singapore’s Crypto Regulatory Landscape
Operating a cryptocurrency business in Singapore requires adherence to specific regulatory standards. The MAS grants two primary types of approvals: the In-Principle Approval (IPA), which allows startups to commence operations while their application is under full review, and the Major Payments Institution (MPI) license, which is the full operating license.
To qualify for an MPI license, companies must satisfy several key requirements:
- Possess an experienced management team with a proven track record in payment services.
- Meet minimum base capital requirements to ensure financial stability.
- Maintain strict compliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations.
- Implement robust consumer protection measures, including a dedicated system for handling customer complaints.
These measures are designed to create a safer ecosystem for everyone involved. Furthermore, Singapore offers significant tax benefits for this sector, including exemptions on capital gains tax and Goods and Services Tax (GST) for Digital Payment Tokens (DPTs), which is the legal term for cryptocurrencies.
Leading Licensed Crypto Companies in Singapore
The following companies have made significant strides in the Singaporean market, having received either an IPA or full MPI license from the MAS.
Coinhako
A user-friendly centralized exchange (CEX), Coinhako received its MPI license in May 2022. It provides a wide array of cryptocurrency trading pairs and integrated wallet services. The platform reported managing S$7 billion in trading volume in 2021 and has seen substantial user growth, fueling its expansion across the region.
Digital Treasures Centre (DTC)
Operating as a B2B service provider, DTC secured its IPA in March 2022. It specializes in helping merchants integrate crypto payments and wallets into their point-of-sale (POS) systems. Its competitive advantage lies in offering lower transaction fees compared to traditional credit card processors, with plans to expand into markets like the UAE and Australia.
DBS Vickers
As the digital asset division of Singapore's largest bank, DBS Bank, DBS Vickers gained MAS approval in 2021. It caters exclusively to institutional and accredited investors, offering brokerage services that include cryptocurrency trading (like BTC, ETH, and XRP) alongside traditional stocks and funds, with settlements in multiple fiat currencies.
TripleA
TripleA holds the distinction of being one of the first companies to receive a full MPI license from the MAS in 2021. This B2B-focused fintech company provides a comprehensive suite of services, enabling online and retail businesses to accept crypto payments. It is renowned for its strict adherence to KYC/AML protocols and oversees over $5 billion in digital assets.
Independent Reserve
This Australian-born exchange was the first foreign-owned company to be granted an MPI license in Singapore. Founded in 2013, it brings a long history of operation to the market. The platform offers a simple interface for trading major cryptocurrencies against fiat currencies like SGD, USD, AUD, and NZD, and is trusted by over 200,000 customers.
FOMO Pay
A licensed MPI since 2021, FOMO Pay provides a one-stop solution for merchants seeking to accept digital currency payments. It played a key role in integrating cryptocurrency QR code payments across Singapore and is known for facilitating low-fee transactions, helping businesses reduce operational costs.
Hodlnaut
This platform focuses on decentralized finance (DeFi) services, allowing users to earn interest on their crypto holdings through lending. Having received its IPA in March 2022, Hodlnaut enables customers to custody their assets in SGD or USD to hedge against crypto volatility and is expanding into retail lending services.
Luno
A global exchange backed by the Digital Currency Group, Luno operates in over 40 countries and has been granted IPA status in Singapore. Its mobile app offers a secure way to buy, sell, and store major cryptocurrencies. A notable feature includes free transactions when sending crypto to other Luno users.
Paxos
This New York-based fintech firm, founded in 2012, is a trusted provider of blockchain infrastructure and custodial wallet services for institutional clients. With a recent valuation of $2.4 billion, it offers a range of asset-backed tokens and settlement services, bringing a wealth of experience to the B2B segment.
Sygnum
A Swiss digital asset bank with an IPA license in Singapore, Sygnum blends traditional banking security with crypto innovation. It offers trading in multiple fiat currencies (CHF, SGD, USD) and cryptocurrencies, along with DeFi staking services and a strong focus on developing Web3.0 infrastructure.
Revolut
Known primarily as a digital banking app, the UK-based Revolut received an IPA for digital token payments in 2022. It offers an all-in-one financial platform where users can buy, hold, and sell popular cryptocurrencies alongside traditional banking services, all within a single application.
For those looking to explore the services of a major global digital asset exchange, you can discover advanced trading platforms here.
Frequently Asked Questions
Is cryptocurrency legal in Singapore?
Yes, cryptocurrency is fully legal and regulated. The MAS recognizes it as an intangible asset, and businesses must operate under the PSA framework, which provides clear guidelines for legality and consumer protection.
How do I buy cryptocurrency in Singapore?
The process typically involves selecting a licensed exchange, creating an account, completing identity verification (KYC), depositing Singapore dollars (SGD) via a supported method, and then executing your trade to purchase the desired digital asset.
Are crypto profits taxed in Singapore?
Singapore does not levy capital gains tax. Furthermore, transactions involving Digital Payment Tokens (DPTs) are exempt from Goods and Services Tax (GST), making it a tax-efficient jurisdiction for crypto investors.
How many people in Singapore invest in crypto?
Recent estimates suggest that over 550,000 people, or nearly 10% of the population, own some form of cryptocurrency, reflecting widespread adoption and interest.
Can I use my traditional bank to buy crypto?
Yes, some traditional banks are involved. DBS Bank offers crypto services through its DBS Vickers platform for institutional clients, and Sygnum operates as a licensed digital asset bank that serves a broader clientele.
Is investing in cryptocurrency safe?
All investments carry risk, and cryptocurrency is known for its volatility. The key to safer participation is to conduct thorough research, only use funds you can afford to lose, and choose platforms that are licensed and regulated by authorities like the MAS.