Why Trust, Not Low Fees, Drives Singapore's Crypto Market Growth

Singapore's cryptocurrency market has emerged as a global benchmark for institutional adoption, not because of low fees or aggressive marketing, but due to a meticulously crafted regulatory framework that prioritizes trust. As the Monetary Authority of Singapore (MAS) continues to refine its oversight of digital assets, the city-state has positioned itself as a trusted hub for institutional investors seeking secure, compliant, and scalable crypto infrastructure. This analysis explores how regulatory trust-not cost-cutting-has become the linchpin of Singapore's crypto market growth, supported by concrete developments in 2023–2025.

A Regulatory Framework Built for Trust

Singapore's regulatory approach to crypto is defined by clarity, adaptability, and a focus on risk mitigation. The Payment Services Act (PSA) of 2019 and the Financial Services and Markets Act (FSMA) of 2022 form the backbone of this framework, granting MAS broad authority to license and supervise digital token service providers (DTSPs) and cross-border activities. Key elements include:
- Licensing Requirements: Entities must hold either a Standard Payment Institution (SPI) or Major Payment Institution (MPI) license, with capital thresholds starting at SGD 250,000 for DTSPs.
- Stablecoin Rules: Single-currency stablecoins (SCS) must maintain 100% reserve coverage, undergo monthly audits, and be issued by Singapore-based firms, ensuring transparency and stability.
- AML/CFT Compliance: Robust anti-money laundering (AML) and counter-terrorist financing (CFT) measures, including the FATF's Travel Rule, mandate transaction monitoring and suspicious activity reporting.

These measures create a predictable environment for institutional players, who prioritize legal certainty over minimal fees. A 2025 survey by Coinbase and MoneyHero found that 65% of Singapore's retail investors consider trust in platforms their most critical factor when investing in crypto, a trend mirrored by institutional actors.

Institutional Adoption: From Compliance to Confidence

The regulatory trust built by MAS has directly fueled institutional participation. A prime example is the Singapore Exchange's (SGX) November 2025 launch of Bitcoin and Ethereum perpetual futures, benchmarking to iEdge CoinDesk indices and designed for institutional-grade clearing and margining. This move, SGX's first foray into crypto derivatives, reflects growing demand for regulated products among asset managers, hedge funds, and corporate treasuries.

Institutional confidence is further evidenced by investment inflows. In H1 2025, Singapore's fintech sector attracted $1.04 billion across 90 deals, with the digital assets segment securing $254.1 million in 48 deals. These figures underscore a shift toward infrastructure-backed crypto adoption, such as Grab and StraitsX's Web3 payment system using stablecoins, which leverages Singapore's regulatory clarity to innovate cross-border solutions.

Trust as a Defense Against Illicit Activity

Singapore's regulatory rigor has also proven critical in maintaining its reputation amid global scrutiny. The 2025 probe into the Prince Holding Group scam, which involved billions in alleged money laundering, prompted MAS and the Singapore Police Force (SPF) to raid linked entities like SRS Auto Holdings. While such cases highlight vulnerabilities, they also demonstrate Singapore's commitment to enforcing trust through transparency. By swiftly addressing misconduct, regulators reinforce the perception that Singapore's crypto ecosystem is resilient to abuse-a key draw for institutional capital.

The Future: Trust as a Strategic Asset

As the global crypto market approaches a $4 trillion valuation in Q3 2025, Singapore's focus on trust positions it to outpace jurisdictions prioritizing short-term growth over long-term stability. Platforms like Webull, which expanded Level 3 trading options to Singapore in 2025, and infrastructure providers such as OKX, aligning with Singapore's regulatory ethos, are offering secure, multi-jurisdictional solutions. This alignment suggests that institutional investors view Singapore not as a low-cost playground but as a trusted partner in navigating the complexities of digital assets.

Conclusion

Singapore's crypto market growth is not a function of low fees or lax oversight but of a regulatory framework that balances innovation with accountability. By embedding trust into its legal and operational infrastructure, Singapore has attracted institutional capital seeking security, compliance, and scalability. As global markets evolve, this trust-centric model will likely serve as a blueprint for other jurisdictions aiming to foster sustainable crypto ecosystems.