Singapore Tightens Crypto Rules, 29% of Residents Own Cryptocurrency

In 2025, Singapore continues to solidify its position as a leading hub for cryptocurrency, driven by a proactive and evolving regulatory framework aimed at enhancing the rules and regulations governing the crypto market. The country is tightening its grip on security and transparency to curb money laundering and bolster investor confidence.

Under the Financial Services and Markets Act 2022 (FSMA), all crypto firms based in Singapore offering cross-border crypto services must obtain a license. The Monetary Authority of Singapore (MAS) has clarified that it is mandatory for digital token service providers (DTSPs) offering services in Singapore to secure a license. Failure to comply with these regulations can result in penalties, including fines up to SGD 250,000 and prison terms of up to three years.

In June 2025, MAS implemented new measures to enhance safeguards for digital payment token (DPT) service providers, including crypto exchanges, and to protect retail investors. These measures include restrictions on lending and staking services for retail customers to reduce risk exposures. Additionally, stablecoin issuers must be regulated under the Payment Services Act for providing “stablecoin issuance services.” Stablecoins that meet strict requirements set by MAS will be labeled as “MAS-regulated stablecoin,” ensuring higher standards of solvency and consumer protection.

MAS has also expanded its regulatory updates regarding security for investors in crypto trading. This amendment includes measures to protect customer assets, disclose risks to retail customers, and handle conflicts of interest. These regulations aim to enhance the overall security and transparency of the crypto market in Singapore.

In terms of licensing, all DPT providers must be licensed under the Payment Services Act. Enhanced due diligence, monitoring, and reporting are required for anti-money laundering (AML) and counter-terrorist financing (CFT) measures. Consumer protection measures include safeguards for assets, audit functions, and restrictions on retail lending. Stablecoins are regulated under the Payment Services Act, and marketing rules require risk disclosure. Cross-border service providers must comply with Singapore’s regulations.

MAS, as the country’s central bank and integral financial regulator, oversees licensing businesses that provide “digital payment tokens,” such as crypto exchanges and digital wallet providers. It enforces AML, CFT, and Know Your Customer (KYC) standards for crypto investors and prohibits misleading tactics to protect users from crypto fraud.

Starting from June 30, 2025, digital token service providers (DTSPs) must cease activities without an official MAS-regulated license. There are no significant changes to what licensed providers can do, and no transition period is given for service providers.

Singapore does not impose capital gains tax on profits from selling or trading cryptocurrencies. Selling or buying crypto as a personal investment is entirely tax-free. However, trading crypto as a business or receiving it as payment for goods or services is subject to Singapore’s standard income tax. This law applies to all professional traders and crypto-related businesses. An 8% Goods and Services Tax (GST) applies to fees in crypto transactions, but buying and selling cryptocurrencies themselves are generally exempt from GST. Airdrops, mining, staking, and Initial Coin Offerings (ICOs) are subject to income tax. Crypto income tax is required to be reported annually, with the deadline for e-filing on April 18, 2025, and for paper filing on April 15, 2025.

In 2025, 29% of Singapore residents have owned or currently own cryptocurrency, marking a significant decrease from 40% in 2024. 23% of crypto users in Singapore believe Bitcoin will surpass $250,000 by 2030. Currently, 28% of crypto investors hold a memecoin. The government has not officially disclosed its holdings, but policies prioritize fostering an innovative and responsible digital asset ecosystem while mitigating risks.

Nearly half of crypto users in Singapore exited the market in 2025. Among them, 67% made significant profits from selling their holdings. The Singaporean government recognizes the potential of cryptocurrency and other digital assets but continues to prioritize consumer protection and financial stability. Authorities have repeatedly advised investors to exercise caution when entering the market.