Singapore has become one of the top places in Asia for cryptocurrency adoption. Its strong tech infrastructure and open economy have attracted investors, startups, and crypto exchanges. However, as the industry grows, so do concerns about risk, scams, and financial stability.
Many people are now asking: Is it legal to use crypto in Singapore? And what are the rules in 2025?
This guide gives you a full picture of how crypto is regulated in Singapore right now. We cover whether you can buy, use, or trade crypto legally. You’ll also learn how the government sees digital assets, what licenses businesses need, and what’s allowed for everyday users.
We made this article clear and easy to follow. Whether you're new to crypto or already investing, you’ll find practical info to help you stay compliant. You’ll also discover what’s changed in 2025 — especially after new laws came into force this year.
Terms like crypto sg, legal crypto Singapore, and crypto regulation sg can be confusing. We break them down so you can understand your rights and responsibilities.
Let’s start by looking at the core question: what is the legal status of crypto in Singapore in 2025?
Legal Status of Cryptocurrency in Singapore
Yes, crypto is legal in Singapore. You can buy, own, and trade cryptocurrencies like Bitcoin, Ethereum, and stablecoins. However, they are not considered legal tender. That means you can’t use them like cash to pay your taxes or official fees. But you can use them for private deals, investments, or trading — as long as it’s done legally.
In Singapore, crypto is known as a Digital Payment Token (DPT). This term is defined under the Payment Services Act (PS Act), which came into force in 2020. The PS Act covers all services that involve dealing with crypto — such as exchanges, wallets, or brokers.
Under this law, companies offering crypto services must register with the Monetary Authority of Singapore (MAS) and apply for the right type of license. If they fail to do that, their operations are considered illegal, even if the assets themselves are not banned.
Examples of Legal Use in Singapore:
- Buying and holding Bitcoin as an investment.
- Trading crypto on a licensed exchange like Coinbase Singapore or Crypto.com.
- Using licensed payment services that accept crypto and convert it into Singapore dollars.
Even though cryptocurrencies are not officially backed by the government, the authorities support innovation and see value in blockchain technology. Singapore’s goal is to build a safe and controlled environment for digital assets — while reducing risks for investors.
Many other countries in Southeast Asia have taken a harder stance, but Singapore has stayed open. That’s why many international crypto firms have moved their operations to the island-state — provided they follow the rules.
In the next section, we’ll look at who makes these rules and how the regulation works in Singapore in 2025.
Regulatory Authorities and Framework
In Singapore, crypto is regulated by the Monetary Authority of Singapore (MAS). MAS is the country’s central bank and main financial regulator. It is responsible for making sure that crypto activities follow the law, protect consumers, and prevent financial crime.
Since 2020, MAS has required all crypto service providers to register and apply for a license under the Payment Services Act (PS Act). This applies to businesses that:
- Buy or sell crypto on behalf of others
- Offer crypto exchange platforms
- Provide wallet services that store digital tokens
- Help users transfer crypto between accounts
In 2025, MAS also introduced new rules under the Financial Services and Markets Act (FSMA). These rules now apply even to companies in Singapore that serve only overseas clients. They must apply for a Digital Token Service Provider (DTSP) license — or stop their operations.
This step was taken because MAS found that some companies were using Singapore as a base to avoid regulations in other countries. With FSMA, Singapore is making sure its crypto ecosystem is not misused.
Key Responsibilities of MAS
| Area | What MAS Does |
|---|---|
| Licensing | Approves crypto firms under PS Act or FSMA |
| Monitoring | Checks if firms follow laws on KYC, AML, and risk controls |
| Enforcement | Can fine or ban companies that break the rules |
| Consumer Protection | Introduces limits and tests for retail users |
If a company operates in crypto without a license, MAS can issue penalties of up to SGD 250,000 and jail terms of up to 3 years. The rules apply not just to big platforms, but also to smaller businesses and startups.
Next, we’ll explore what has changed specifically in 2025 — and how the new licensing under FSMA affects crypto businesses in Singapore.
2025 Updates: FSMA and DTSP Licensing
In 2025, Singapore introduced a major regulatory shift through the Financial Services and Markets Act (FSMA). This law adds new rules for crypto companies operating in or from Singapore, even if they only serve foreign customers.
Under FSMA, any business that offers digital token services must apply for a Digital Token Service Provider (DTSP) license. This includes companies that:
- Operate crypto exchanges
- Provide wallet or token custody services
- Facilitate crypto transfers or fundraising
The law took full effect on 30 June 2025. MAS now requires crypto firms that serve clients outside Singapore to either get licensed or stop operating. This closes the old loophole where companies based in Singapore could legally serve only overseas users without following local rules.
Why FSMA Was Introduced
MAS explained that FSMA was needed to prevent money laundering and ensure financial stability. In the past, some crypto companies used Singapore’s friendly image to build trust with investors — but didn’t follow Singapore’s strict standards.
"Singapore must not become a base for bad actors who damage the global crypto ecosystem." — MAS official statement
MAS also made it clear that getting a DTSP license will be tough. They will only approve applicants with strong internal controls, experienced management, and clear risk policies.
As a result, many firms have chosen to exit the market or move to locations like Hong Kong or Dubai. In 2025, this has caused a wave of industry consolidation in the crypto sg scene.
For investors and users, this means greater safety — but fewer service options. For businesses, it means that being legal in Singapore requires more paperwork, more cost, and more oversight than before.
Next, we’ll explore exactly what you can and can’t do with crypto in Singapore today.
What You Can and Can’t Do With Crypto in Singapore
So, now that you know crypto is legal and regulated, what can you actually do with it in Singapore?
The answer depends on whether you’re an individual or a business, and whether you’re using licensed platforms.
✅ What You Can Do
- Buy and hold crypto as an investment. Anyone in Singapore can open an account with a licensed exchange and purchase Bitcoin, Ethereum, or other tokens.
- Trade crypto on approved platforms like Coinbase Singapore or Crypto.com, which are registered with MAS.
- Use crypto to pay for goods or services, if the merchant accepts it — either directly or through a licensed payment partner (e.g., using a gateway like TripleA).
- Transfer crypto between your own wallets, or to family and friends, as long as the transaction isn’t part of a business activity.
❌ What You Can’t Do
- Offer crypto loans or margin products to retail investors — this is banned under MAS rules to protect consumers.
- Promote crypto to the public using incentives, bonuses, or misleading marketing.
- Operate a crypto business (exchange, wallet, brokerage) without a license, even if serving only overseas clients.
Also, DeFi services are in a grey area. If a DeFi platform has a central operator or offers services to the public, MAS may consider it a regulated activity. This means it could fall under FSMA or the PS Act.
Example Use Cases
Let’s say you’re a Singapore resident who wants to pay a freelance designer overseas in crypto. That’s allowed — especially if you use a regulated platform that handles the transfer and conversion. But if you’re running a business that accepts crypto payments regularly, you may need to register with MAS.
On the other hand, if you're simply buying crypto to invest and hold in your personal wallet, you don’t need any license — just choose a legal exchange.
Up next, let’s look at the rules around AML, CFT, and the Travel Rule in Singapore’s crypto sector.
AML/CFT and the Travel Rule
Singapore takes financial crime seriously. That’s why crypto regulations in 2025 include strong rules for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT).
If you run a crypto business in Singapore — even a small one — you must have systems in place to detect and report suspicious activity. This includes checking user identities (KYC), monitoring transactions, and reporting to MAS if needed.
The Travel Rule Explained
In 2025, Singapore fully adopted the Travel Rule. This is a global standard created by the Financial Action Task Force (FATF). It applies to digital asset transfers over a certain amount.
Under the rule, crypto businesses must collect and share personal details of both the sender and the receiver in any transaction worth SGD 1,500 or more. This helps regulators trace funds and prevent illegal use.
What Information Is Required
- Full name of sender and receiver
- Wallet addresses
- Transaction purpose (if requested)
- ID or registration numbers (for large or high-risk transfers)
This applies not just to centralized exchanges, but also to wallet providers and payment platforms. Even if the receiver uses a non-custodial wallet (like MetaMask), the sender’s service provider must collect the data before releasing the transfer.
Failing to comply can result in serious penalties. MAS can revoke licenses, issue large fines, or launch criminal charges for repeated breaches.
For individual users, the main takeaway is this: your crypto transactions are not fully anonymous if they go through regulated platforms. Make sure you understand how your data is handled, and use legal services that follow the rules.
Next, we’ll look at how crypto is taxed in Singapore — and what you need to know as an investor or business.
Tax Implications of Using Crypto in Singapore
Singapore is known for having a friendly tax environment, and this also applies to crypto. But that doesn’t mean there are no taxes at all. Whether you pay tax depends on how you use your crypto.
Good News for Investors
If you buy and hold crypto for personal investment, you’re in luck. There is no capital gains tax in Singapore. So if your Bitcoin grows in value and you sell it later, you don’t owe tax on the profit.
This applies to individual users who trade occasionally or keep crypto as part of a personal portfolio.
But Businesses Pay Income Tax
If you run a business and use crypto to earn revenue — like offering services or trading as a company — then your profits are taxable. In this case, crypto is treated as income, and you must report it just like any other earnings.
GST and Crypto
There’s no Goods and Services Tax (GST) on the purchase of crypto itself. But if a company charges fees for crypto-related services (like wallet or exchange fees), those fees may include GST at the standard rate (currently 8%).
Examples:
- You buy ETH on an exchange → No tax
- You mine crypto as a business → Taxed as income
- You offer consulting services and accept crypto as payment → Taxed as income
To stay safe, it’s a good idea to keep records of all your crypto activity: buy/sell dates, prices, wallet addresses, and any invoices or contracts. If you’re unsure, speak with a tax advisor who understands digital assets.
In the next section, we’ll show how you can legally use crypto in Singapore in everyday life.
How to Legally Use Crypto in 2025: Practical Scenarios
Using crypto in Singapore is legal — but it must be done the right way. Here are some real-life examples of how you can use crypto in 2025 while staying within the law.
1. Paying for Services or Goods
You can use crypto to pay for products or services, as long as the seller agrees. This is usually done through a licensed payment gateway that accepts crypto and converts it into Singapore dollars (SGD).
- Example: You pay an invoice using Bitcoin via a provider like TripleA.
- The service converts the crypto to SGD and deposits the funds into the merchant’s bank account.
This method ensures that the transaction is tracked and complies with MAS rules.
2. Sending Money Overseas
You can send crypto to family or friends abroad — just like a remittance — using a legal crypto wallet. If the transfer is over SGD 1,500, the service provider may ask for extra information (due to the Travel Rule).
3. Accepting Crypto as a Freelancer
If you're a freelancer, you can accept crypto for work. However, if you live in Singapore, you must declare this as income. You can receive payment in your personal wallet, but it’s safer to use licensed platforms that help with reporting and tax.
4. Buying Real Estate or Cars with Crypto
This is possible in some cases, but must involve proper documentation. You’ll likely need to go through a legal advisor and a licensed conversion service to avoid legal issues.
Tips for Staying Legal
- Use only MAS-licensed exchanges and wallets.
- Keep receipts and transaction records.
- Don’t accept crypto payments in cash or through unknown third parties.
As long as you follow the rules, crypto can be used in everyday transactions without breaking the law.
Next, let’s explore what businesses need to know if they want to work with crypto legally in Singapore.
Business and Compliance Considerations
Running a crypto-related business in Singapore comes with strict legal duties. In 2025, it’s no longer possible to offer services in crypto without first registering with the Monetary Authority of Singapore (MAS).
Do You Need a License?
If your company offers any of the following, you will likely need a license under the Payment Services Act (PS Act) or the Financial Services and Markets Act (FSMA):
- Crypto exchange services (buying/selling)
- Token custody or wallet services
- Crypto payments or remittances
- Crypto fundraising or launchpad platforms
Types of Licenses
- Standard Payment Institution (SPI): For smaller crypto businesses with lower volume.
- Major Payment Institution (MPI): For large-scale services processing over SGD 3 million/month.
- Digital Token Service Provider (DTSP): Required under FSMA for any firm serving clients outside Singapore.
Compliance Requirements
All licensed firms must:
- Conduct KYC (Know Your Customer) checks
- Report suspicious transactions to MAS
- Maintain internal risk policies and audits
- Protect customer funds and data
Common Mistakes to Avoid
- Failing to apply for the right license before launch
- Serving foreign clients without a DTSP license
- Not reporting AML breaches or security incidents
Penalties for non-compliance can be harsh: fines of up to SGD 250,000 and imprisonment up to 3 years. MAS has made clear that “light-touch” regulation is no longer acceptable in the crypto space.
For startups, this means more planning and higher legal costs. But if done correctly, Singapore remains one of the most respected places in the world to build a crypto business.
In the next and final section, let’s sum it all up — and show you a trusted way to get started in crypto legally and securely.
Conclusion
So, is it legal to use crypto in Singapore in 2025? The answer is yes — but only if you follow the rules.
Singapore allows individuals to buy, hold, trade, and use cryptocurrencies. The government supports innovation and digital finance. But to protect users and prevent abuse, it has introduced strict regulations through MAS, the PS Act, and FSMA.
In 2025, new licensing rules apply not only to local companies, but also to those serving clients abroad. The crypto industry in Singapore has matured — with clear laws, high compliance standards, and tough enforcement.
For individuals, crypto is a legal tool for investment and payments. Just make sure you use licensed platforms, keep records, and follow basic tax and reporting rules. For businesses, it’s critical to understand if you need a license and to build your company on a compliant foundation.
Singapore remains one of the most advanced and respected countries for legal crypto activity — but it rewards only those who play by the rules.
If you’re looking for a secure, compliant, and fast way to get started with crypto in Singapore, check out https://immediatefastxsg.io. The platform is designed for smart investors who want simplicity and safety — all under Singapore’s legal framework.
