Singapore has grown into a leading hub for digital assets and blockchain development in Asia. With its strong legal system and forward-thinking policies, it continues to attract crypto investors, fintech startups, and global exchanges.
But as the crypto market evolves, so do the risks. Over the past few years, the world has seen high-profile exchange failures, scams, and unlicensed platforms targeting users. In response, Singapore rolled out new and stricter crypto rules in 2025. These updates aim to protect investors and strengthen the country’s position as a trusted financial center.
This guide explains everything you need to know about the current crypto regulation in Singapore. Whether you are trading, investing, or building in the space, these rules directly affect how you use crypto in the country.
Here’s what we’ll cover:
- Which laws and agencies now oversee crypto businesses in Singapore
- How the licensing process works and who needs it
- What safety rules protect regular users and their funds
- How global and local companies are adjusting to these changes
We’ll also explore future trends and introduce a digital platform that already works within the new rules and supports investors in Singapore.
Let’s start with the legal changes that shaped Singapore’s updated crypto environment in 2025.
Regulatory Framework in 2025
In 2025, Singapore introduced a more complete set of crypto rules. These changes were designed to reduce risks and create a strong legal base for the fast-growing digital asset sector. Two main laws now define how crypto services must operate in the country.
1. The Payment Services Act (PSA)
The PSA is the foundation for regulating services related to digital tokens. If a company lets people buy, sell, send, or hold cryptocurrencies in Singapore, it must register under this law. This includes exchanges, wallet providers, and payment gateways.
There are two license types under PSA:
- Standard Payment Institution (SPI) – for smaller firms with limited transaction volumes.
- Major Payment Institution (MPI) – for larger businesses dealing with high user or transaction numbers.
Several major players have obtained these licenses. For example:
| Company | License | Main Services |
|---|---|---|
| Circle Singapore | MPI | Stablecoin support and token issuance |
| DBS Digital Exchange | MPI | Trading and custody for institutions |
| Crypto.com | SPI | Retail trading and payments |
2. The Financial Services and Markets Act (FSMA)
The FSMA adds another layer of regulation. It now covers companies that provide crypto services from Singapore, even if they don’t serve local clients. From June 30, 2025, these businesses must also apply for a license or stop operating.
This rule was added to close loopholes. In the past, some companies ran international operations from Singapore without local compliance. Now, all crypto firms must meet the same standards if they are based in the country.
Bybit and Bitget are examples of companies reviewing their presence in Singapore due to these changes.
What It Means
Singapore is making it clear: if you want to run a crypto business here, you must follow local laws. These regulations build confidence and make sure users are protected — whether they are in Singapore or abroad.
Next, let’s look at how the licensing process works and what crypto platforms need to do to stay compliant.
Licensing and Legal Status of Crypto Providers
To operate legally in Singapore’s crypto space, companies must now go through a formal licensing process. This applies to both local businesses and firms that use Singapore as a base for serving clients in other countries.
Who Must Apply for a License?
Under the updated 2025 rules, any business offering digital token services needs approval from the Monetary Authority of Singapore (MAS). These services include:
- Crypto exchanges for buying and selling tokens
- Wallet apps and custodial storage
- Platforms for token launches or fundraising
- Payment and transfer systems using crypto
MAS now classifies service providers into two groups:
- Digital Payment Token (DPT) providers – companies that help people send, receive, or trade crypto.
- Digital Token Service Providers (DTSP) – firms offering broader token-related services, including for overseas clients.
New Rules for DTSPs
One major update in 2025 is the licensing of DTSPs that serve only foreign users. Before this, many such companies operated from Singapore without a local license. Now, they must register or leave the market.
This step was taken to stop misuse of Singapore’s reputation as a safe base for unregulated operations abroad.
What the Licensing Process Involves
Getting licensed is not just a formality. Applicants must show they have:
- Clear anti-money laundering (AML) systems in place
- Effective processes for monitoring and reporting risks
- Local business operations and responsible management
- Data protection and cybersecurity controls
MAS may reject applications from companies that don’t have a real local presence or those that fail to meet transparency standards.
Licensed Firms in 2025
- Anchorage Digital: Offers secure crypto custody solutions for institutions.
- Blockchain.com: Provides a wallet and trading service tailored for Singapore users.
- Independent Reserve: One of the first exchanges to get full approval under MAS rules.
Who Chose to Exit
Companies like OKX and Bitget have scaled back operations or relocated, pointing to the high compliance costs as a reason.
Next, we’ll look at how Singapore’s rules are protecting retail investors who use crypto services for trading and payments.
Retail Investor Protections
Singapore’s 2025 crypto regulations don’t just target companies — they also focus on everyday users. The goal is to help people avoid losses and reduce exposure to high-risk investments.
New Safety Measures for Regular Users
Retail investors now face stricter rules when using crypto platforms. These changes are designed to prevent impulsive or poorly informed trading. Key protection measures include:
- No credit card payments: People can no longer buy crypto using credit cards. This stops users from borrowing money to invest.
- Knowledge assessments: Platforms must test each new user’s understanding of crypto risks before they’re allowed to trade.
- Ban on promotional offers: Bonuses, referral rewards, and free token giveaways are no longer allowed for retail users.
Why These Measures Matter
Inexperienced investors often buy into crypto during hype cycles, only to lose money during price drops. These new rules help reduce such behavior by requiring platforms to:
- Explain key risks before allowing access to trading tools
- Block features like margin trading or leverage for most users
- Encourage long-term investing instead of short-term speculation
These steps may seem strict, but they aim to protect people from poor decisions and misleading marketing.
Changes Made by Platforms
Many registered platforms have already adapted:
- Crypto.com disabled reward programs in its Singapore app.
- DBS Digital Exchange only accepts accredited or institutional investors.
- Independent Reserve added mandatory education modules for new signups.
Long-Term Benefits
With these rules, Singapore aims to create a safer environment where users understand what they’re buying — and know their money is protected. This increases confidence and helps the market mature.
Next, we’ll look at how Singapore is using global standards to stop money laundering and keep illegal activity out of the crypto system.
AML Measures and the Travel Rule
Stopping money laundering and illegal activities is a top priority for Singapore’s crypto rules. To do this, the Monetary Authority of Singapore (MAS) has adopted global standards and added its own requirements.
Understanding the Travel Rule
The Travel Rule comes from the Financial Action Task Force (FATF). It requires crypto companies to collect and share personal information about users when large transactions happen. This helps authorities track suspicious transfers and fight crime.
In Singapore, this is implemented through Notice PSN02, which applies to all Digital Payment Token (DPT) services.
Main Requirements
- Crypto firms must collect sender and receiver names, wallet addresses, and other details for every transaction.
- For transfers above SGD 1,500 (~USD 1,100), more detailed info like identification numbers must be collected.
- Companies must share this information with the counterparty’s service provider before completing the transfer.
How It Affects Users and Wallets
If you send crypto between exchanges or regulated platforms, your personal data travels along with your transaction. This happens behind the scenes and adds an extra layer of security.
However, transfers to and from self-custody wallets (like hardware wallets or private keys you control) are not directly covered by the Travel Rule. Because these wallets are harder to monitor, platforms may require additional checks when sending crypto to or from them.
Technology and Compliance
To comply with these rules, licensed crypto firms use special software to verify users, scan transactions, and keep records securely. This ensures they follow regulations without delaying user activity.
These measures help build trust and prevent Singapore’s crypto ecosystem from being used for illegal purposes.
Next, we will discuss how crypto companies must safeguard client funds through secure custody and segregation.
Segregation and Custody of Client Funds
Keeping customer funds safe is a major focus in Singapore’s crypto regulations. Licensed platforms must follow strict rules to separate client assets from their own. This way, user money is protected even if the company faces problems.
What Is Fund Segregation?
Segregation means storing client funds in accounts or wallets separate from the company’s operating funds. This prevents companies from using customer assets for business expenses or risky trades.
Key Rules to Follow
- Separate accounts or wallets must be clearly marked to show they belong to clients.
- Daily balance checks are required to make sure funds are accurate and complete.
- Use of independent custodians is encouraged. These are third-party companies that specialize in securely holding digital assets.
Example in Practice
Anchorage Digital is a licensed custodian in Singapore that offers secure cold storage and insurance protection for institutional clients. This kind of service helps reduce the risk of hacks or theft.
Why This Matters
Past incidents, like the collapse of FTX, showed what can happen when funds aren’t properly protected. Singapore’s rules aim to prevent such failures by ensuring transparency and security for client assets.
Because of these measures, investors can have more confidence when using licensed platforms in Singapore.
Next, let’s explore how these regulations have affected the crypto market and the key players involved.
Impact on the Market and Key Players
The updated crypto regulations have had a big effect on Singapore’s market. Some companies have welcomed the clearer rules and stayed, while others found compliance too difficult and decided to leave.
Companies Staying in Singapore
Many well-known crypto firms have embraced the stricter requirements and continue operating in Singapore. They value the country’s stable legal system and clear regulations.
- Coinbase Singapore – operates with a Major Payment Institution license, offering trusted crypto trading services.
- Circle – licensed for stablecoin activities and focused on regulated financial products.
- DBS Digital Exchange – supported by a major local bank, serving institutional clients.
Companies Leaving or Scaling Back
Some platforms have found the new rules too strict or costly. They are reducing their presence in Singapore or relocating operations to other crypto-friendly regions.
- Bybit – reportedly moving some activities to Dubai.
- Bitget – considering Hong Kong for regional operations.
- OKX – exploring alternatives due to the tight licensing deadlines.
What This Means for Users
For crypto users in Singapore, this shift is positive. Licensed platforms offer more security and transparency. At the same time, the market is becoming more mature and reliable.
Next, we will look at new opportunities for institutions and future trends in Singapore’s crypto scene.
Institutional Opportunities and Future Trends
Despite stricter regulations, Singapore is still encouraging innovation in crypto. The country is focusing on building a safe environment for big investors and companies looking to create new financial products.
Important Developments in 2025
- Bitcoin Perpetual Futures: The Singapore Exchange (SGX) plans to launch open-ended Bitcoin futures contracts. These products are designed mainly for institutional investors, not everyday traders.
- Tokenization: Financial institutions like DBS Bank are using blockchain technology to turn traditional assets like bonds and real estate into digital tokens. This makes trading faster and more efficient.
- Stablecoins: Companies such as Circle are building regulated stablecoin platforms to support digital payments and settlements within Singapore’s financial system.
Innovation Support
MAS offers “regulatory sandboxes” where startups can test new crypto ideas with fewer rules. If the tests succeed, companies can apply for full licenses later.
For example, a local fintech startup trialed a blockchain-based invoice financing platform in the sandbox and expanded its service across Southeast Asia.
What’s Next?
Singapore is expected to continue focusing on:
- Central Bank Digital Currency (CBDC) research and trials
- Institutional decentralized finance (DeFi) solutions
- Cross-border digital payment networks with partner countries
The country aims to lead the way in regulated crypto innovation.
Finally, let’s wrap up with a summary and a look at a trusted platform working under Singapore’s new rules.
Conclusion
Singapore has set a clear direction for crypto’s future: strict rules combined with support for innovation. The updated 2025 regulations create a safer environment for investors and businesses alike.
Crypto companies now face higher standards. Only those that meet Singapore’s requirements can operate locally. This means users can trust licensed platforms that follow strong security and compliance practices.
The government’s approach balances protection for everyday investors with room for growth in institutional and technological areas. Retail users benefit from limits that reduce risky behavior, while institutions gain access to new products and services.
If you want a crypto platform that complies fully with Singapore’s laws and offers reliable investment and trading options, Immediate FastX is a great choice. This automated cryptocurrency platform supports both beginners and experienced traders. It provides a secure way to participate in the digital asset market in Singapore.
With clear rules and trusted platforms like Immediate FastX, Singapore is shaping a mature and responsible crypto ecosystem ready for the future.
