Singapore has become one of the most important hubs for cryptocurrency in Asia. Its government sees digital assets as part of the future financial system. But it also believes in strong rules to protect investors and keep the market clean.
In recent years, the crypto space has changed a lot. There have been global scandals, collapses of large exchanges, and growing concerns about money laundering. Because of this, Singapore’s regulators have taken a new step in 2025. They updated the crypto laws and made them stricter.
This article gives you a full update on crypto regulations in Singapore as of 2025. Whether you are a trader, investor, startup, or just interested in the market, this guide is for you.
You will learn:
- What laws now apply to cryptocurrency businesses in Singapore
- What is required to get a crypto license
- How retail investors are protected with the new rules
- What risks and limits companies face if they serve clients abroad
We will also look at how these changes affect local platforms, crypto exchanges, and future investment plans. In the end, you will find a practical summary and an overview of a platform that operates in full compliance with the latest rules.
Let’s begin with the legal framework behind these updates.
Regulatory Framework in 2025
In 2025, the crypto rules in Singapore became stricter and more detailed. The country wants to stop risky activities while still allowing growth in digital finance. Two main laws shape the current crypto landscape:
1. Payment Services Act (PSA)
The PSA regulates Digital Payment Token (DPT) services. This includes companies that let people buy, sell, or store cryptocurrencies. If you offer a crypto wallet, run an exchange, or process crypto payments in Singapore, you need a license under the PSA.
- SPI (Standard Payment Institution): For smaller companies with lower transaction volumes.
- MPI (Major Payment Institution): For larger players. Many international firms apply for this license to serve more customers.
Examples of licensed firms in 2025:
| Company | License Type | Services |
|---|---|---|
| Coinbase Singapore | MPI | Crypto exchange, wallet services |
| Circle | MPI | Stablecoin operations |
| DBS Bank | MPI | Institutional crypto trading |
2. Financial Services and Markets Act (FSMA)
Starting June 30, 2025, the FSMA applies to all Digital Token Service Providers (DTSPs) in Singapore. Even if a company serves only foreign clients, it must apply for a license under this law.
MAS (Monetary Authority of Singapore) now has more control over crypto firms based in Singapore. This means no more regulatory loopholes. If a company operates from Singapore and provides crypto services, it must follow the rules — or leave the country.
Bybit and Bitget, for example, were offering services to users outside Singapore. They now face stricter licensing rules and are reviewing their operations.
Why This Matters
These changes are part of a bigger plan. Singapore wants to become a safe and trusted center for crypto finance. That’s why it’s focusing on licensed, well-managed companies — and making it harder for unregulated platforms to operate.
Next, let’s look at what companies must do to get licensed and how that affects crypto businesses in Singapore.
Licensing and Legal Status of Crypto Service Providers
To operate legally in Singapore, every crypto company must now get a license. This applies to both local and foreign-facing services. Without approval from the MAS, platforms are not allowed to serve users — even if they are only overseas clients.
Who Needs a License?
Any company that offers these services must register with MAS:
- Crypto exchanges
- Wallet providers
- Token issuance platforms
- Custodial service providers
These firms are classified as either:
- DPT (Digital Payment Token) Providers: For platforms dealing with cryptocurrency transfers, payments, or exchange.
- DTSP (Digital Token Service Providers): A broader group that includes token launches, custodians, and overseas-serving crypto firms.
In 2025, MAS made one major change: even companies with only overseas users now need a license. Before, they could operate from Singapore without one. Now, they must follow local rules — or relocate.
How to Get a License
Getting a crypto license is not easy. MAS requires strict checks. Applicants must prove they have:
- Strong anti-money laundering (AML) systems
- Risk controls and user protections
- Qualified leadership and local operations
- Cybersecurity procedures
MAS also looks at where the company is based. Firms without a real presence in Singapore may be rejected.
Examples of Licensed Providers
In 2025, the following companies hold licenses in Singapore:
- Blockchain.com: Offers crypto trading and wallet services to local users.
- Anchorage Digital: A digital asset custodian working with institutions.
- DBS Digital Exchange: The crypto division of one of Singapore’s largest banks.
Who Is Leaving?
Some platforms decided not to meet the new rules. Bitget, Bybit, and OKX reportedly plan to move their regional operations to Hong Kong or Dubai, where requirements are less strict.
Why It Matters for You
Whether you’re a user or a business, this means you can trust licensed providers more than ever. They follow local laws and must meet high safety standards.
Next, let’s look at how Singapore protects everyday users with rules for retail crypto investors.
Retail Investor Protections and Restrictions
Singapore wants to make sure that people who invest in crypto understand the risks. That’s why MAS introduced new protections for retail (non-professional) investors in 2025. These rules limit risky behavior and stop platforms from encouraging users to trade without proper knowledge.
Key Measures in 2025
Here are the main ways Singapore now protects retail investors:
- No credit cards for crypto purchases: Users cannot use borrowed funds like credit cards to buy crypto. This reduces the chance of falling into debt.
- Risk awareness tests: Before trading crypto, new users must complete a test. They must show that they understand market risks, asset volatility, and possible losses.
- Ban on incentives: Licensed platforms are not allowed to offer promotions like airdrops, trading bonuses, or referral rewards to retail users.
Why These Rules Exist
Many new investors enter the market without knowing how volatile crypto can be. Prices can rise and fall quickly. These protections help people avoid big mistakes like:
- Investing money they can’t afford to lose
- Falling for promotional tricks
- Copying risky strategies from social media
Impact on Platforms
All licensed platforms must follow these rules. If they target retail investors in Singapore, they need to:
- Remove leverage and margin options
- Disable risky derivatives for regular users
- Offer clear educational content
For example, DBS Digital Exchange only offers crypto services to accredited investors. Other platforms like Crypto.com and Independent Reserve redesigned their Singapore services to meet these limits.
What This Means for Investors
These changes may feel strict, but they aim to keep the crypto market safer. They stop reckless spending and encourage long-term thinking. If you are using a platform in Singapore, make sure it complies with these protections.
Next, let’s explore how Singapore applies global AML rules, especially the Crypto Travel Rule.
AML Measures and the Travel Rule
Fighting money laundering is one of the top goals for Singapore’s crypto regulation. In 2025, the Monetary Authority of Singapore (MAS) expanded its Anti-Money Laundering (AML) rules. These apply to all crypto service providers, including those that serve users overseas.
What Is the Travel Rule?
The Crypto Travel Rule comes from the Financial Action Task Force (FATF). It requires crypto businesses to collect and share personal information when users make large transfers. This helps track illegal funds and stop criminal activity.
In Singapore, the Travel Rule is enforced under Notice PSN02. It affects all transactions involving Digital Payment Tokens (DPTs).
Key Requirements
- For all transfers, crypto companies must collect the name and wallet address of both sender and recipient.
- For transfers above SGD 1,500 (~USD 1,100), they must also collect more detailed information like ID numbers and nationalities.
- Crypto businesses must share this data with the other service provider before completing the transaction.
How It Affects Wallets and Users
If you send crypto from one exchange to another, your personal info is passed along. This happens in the background. It doesn’t affect how the transaction works, but it adds more security and traceability.
Self-hosted wallets (like MetaMask or Ledger) are not directly covered by the Travel Rule. But if you send money to or from these wallets, the platform may ask for extra verification. That’s because self-custody wallets are considered higher risk.
Impact on Platforms
To follow these rules, licensed companies in Singapore use specialized compliance software. They verify users, scan transactions, and store data securely.
This makes regulated platforms safer — and helps build trust in crypto services in Singapore.
Now, let’s see how these platforms are also required to protect your assets with safe storage systems.
Segregation and Custody of Client Funds
Singapore requires all licensed crypto platforms to keep user funds safe. In 2025, MAS introduced new rules that focus on segregation, daily checks, and independent custody. These rules help prevent misuse of client assets.
What Is Fund Segregation?
Crypto companies must store customer funds separately from their own business funds. This protects users if the company runs into financial trouble. It also prevents the platform from using customer crypto for its own trading.
Key Requirements
- Separate wallets: Each customer’s funds must be kept in clearly labeled accounts or wallets.
- Daily reconciliation: Companies must check and confirm balances every day. If there are any gaps, they must fix them quickly.
- Independent custody: MAS encourages the use of external, regulated custodians to store digital assets.
Example of a Custodial Model
Anchorage Digital, a licensed provider in Singapore, uses cold storage solutions and insurance to protect institutional crypto holdings. Their model is now a benchmark for other platforms in the region.
Why It Matters
In the past, some unregulated exchanges lost or misused user funds — like FTX in 2022. Singapore wants to avoid these problems by making sure all assets are tracked and protected at all times.
As a result, regulated platforms in Singapore now offer stronger security and more transparency. For users, this means fewer risks and more peace of mind when holding crypto assets.
Next, we’ll look at how these rules are changing the market — and which companies are staying or leaving Singapore.
Impact on the Market and Key Players
Stronger crypto regulations in Singapore have changed how companies operate. Some platforms have embraced the new rules, while others have decided to leave the country.
Who Is Staying?
Several well-known crypto firms have chosen to stay and fully comply with MAS regulations. They see Singapore as a stable and trusted base for long-term growth.
- Coinbase Singapore: Licensed as a Major Payment Institution. Offers secure trading for local users.
- Circle: Licensed to operate stablecoin services. Focused on regulated finance.
- DBS Digital Exchange: Backed by one of Singapore’s largest banks. Provides services to institutions and accredited investors.
These firms invest in compliance, security, and customer education. They meet high standards and are allowed to offer more services in the local market.
Who Is Leaving?
Other platforms, especially those focused on offshore users, are exiting Singapore. They find the new rules too strict or not suited for their business model.
- Bybit: Reported to be moving part of its operations to Dubai.
- Bitget: Scaling down activity in Singapore and looking at Hong Kong.
- OKX: Exploring other jurisdictions after tighter licensing deadlines.
Why It Matters
This shift is good news for users in Singapore. Fewer unlicensed platforms mean fewer risks. Licensed companies are easier to trust, and they must follow clear rules set by MAS.
However, global platforms that want flexibility may prefer other markets. This shows how regulatory policies can shape where and how crypto businesses grow.
Next, we’ll look at new opportunities in the market, especially for institutions and long-term investors.
Institutional Opportunities and Future Trends
Even with stricter rules, Singapore continues to support innovation in digital finance. In fact, 2025 brings new chances for institutional investors and companies that want to build reliable crypto products.
Key Developments in 2025
- Bitcoin Perpetual Futures: The Singapore Exchange (SGX) announced plans to launch open-ended Bitcoin futures. These products are aimed at institutions, not retail traders.
- Tokenization of assets: DBS Bank and other financial firms are using blockchain to tokenize bonds and real estate. This opens the door to faster, cheaper trading of traditional assets.
- Stablecoins and digital payments: Circle and Paxos are working on stablecoin infrastructure within Singapore’s regulated environment.
Support for Innovation
MAS also offers “regulatory sandboxes” where startups can test new ideas with fewer restrictions. If the projects prove safe and useful, they can apply for a full license later.
For example, a local fintech firm tested a blockchain-based invoice finance system in the MAS sandbox and later expanded into Southeast Asia. This shows that Singapore is not anti-crypto — it just wants to keep the system clean and trusted.
What to Expect Next
Singapore will likely continue to support:
- Central Bank Digital Currency (CBDC) research
- Institutional DeFi tools
- Cross-border digital payments with partner countries
As the global market matures, Singapore wants to stay ahead — but on strong legal ground. For platforms that can meet the rules, the future looks promising.
Now, let’s summarize everything and see how one platform is already working within this framework.
Conclusion
Singapore has made it clear: the future of crypto must be safe, stable, and well-regulated. In 2025, the country introduced some of the most detailed crypto rules in the world. These rules protect investors, reduce financial crime, and help build trust in digital finance.
For crypto companies, this means higher standards. Only serious, well-managed platforms can stay and grow in the Singapore market. For users, it means more security, better services, and fewer risks from shady operators.
The government’s goal is not to block crypto — but to support it in a way that protects the economy and everyday users. Retail traders now have better protection. Institutions have more tools. And startups have clear guidance on what is allowed.
If you're looking for a platform that follows these new rules and gives you legal, safe access to digital assets in Singapore, there is a smart option worth considering.
https://immediatefastxsg.io is an automated cryptocurrency platform designed for both new and experienced users. It supports investing and trading in a fully regulated way. Whether you are in Singapore or looking for a trusted gateway to Asia’s crypto markets, Immediate FastX follows local laws and offers a smooth user experience.
Singapore’s crypto future is already here — and platforms like Immediate FastX are helping to shape it.
