Singapore Crypto Regulations and Licensing Framework in 2025

Singapore Crypto Regulations and Licensing Framework in 2025 Nov, 29 2025

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By June 30, 2025, if you were running a crypto exchange, wallet service, or token trading platform from Singapore-even if you only served customers overseas-you had to shut down or get licensed. No grace period. No exceptions. That’s how serious Singapore got about cryptocurrency regulation.

What Changed in 2025?

The big shift came with the Financial Services and Markets Act 2022 (FSMA), which replaced older rules and gave the Monetary Authority of Singapore (MAS) full control over digital asset services. Before this, companies could operate under looser guidelines under the Payment Services Act. Now, every single digital token service provider (DTSP) must be licensed by MAS. That includes exchanges, custodians, staking services, and even decentralized platforms if they have a physical presence or team in Singapore.

The new law doesn’t just apply to businesses serving locals. If your company is based in Singapore, even if you only trade with users in Nigeria or Brazil, you still need a license. This extraterritorial reach is rare globally-and it’s why so many crypto firms moved their headquarters out of Singapore after the deadline.

Two Tiers of Licensing

Singapore doesn’t use a one-size-fits-all license. It has two main categories, based on how much money flows through your platform each month.

  • Standard Payment Institution License: For businesses handling up to SGD 3 million in monthly transaction volume. Requires at least SGD 100,000 in paid-up capital. You’ll need basic AML checks, customer verification, and regular reporting to MAS.
  • Major Payment Institution License: For platforms handling more than SGD 3 million monthly. Minimum capital jumps to SGD 250,000. You’ll need advanced cybersecurity systems, annual third-party audits, a full-time compliance officer based in Singapore, and real-time transaction monitoring.
There’s also a rare third option: Exempt Payment Service Provider status. This applies only to very low-risk activities like small-scale peer-to-peer transfers under SGD 5,000 per transaction. Even then, you must notify MAS and stick to strict limits.

Anti-Money Laundering Rules Are Tighter Than Banks

MAS doesn’t treat crypto like a novelty. It treats it like a bank. The key rule is Notice PSN02, known as the Crypto Travel Rule. It forces every licensed provider to collect and share the same data on every transaction as traditional financial institutions: full names, addresses, ID numbers, and wallet addresses of both sender and receiver.

If you’re sending more than SGD 1,000 in crypto, your platform must verify both parties. If you see unusual patterns-like sudden large transfers from unknown wallets, or rapid movement between multiple accounts-you must report it to Singapore’s Financial Intelligence Unit. Failure to do so can mean fines up to SGD 2 million or jail time for executives.

This isn’t optional. Even decentralized platforms that claim to be “non-custodial” must comply if they’re registered in Singapore. There’s no loophole for anonymity.

Compliance analyst monitoring encrypted crypto transactions under MAS regulatory screens.

Credit Cards Are Banned for Crypto Purchases

One of the most surprising moves in 2025 was the outright ban on using credit cards to buy cryptocurrency. MAS saw too many retail investors using high-interest debt to gamble on volatile tokens. The rule applies to all licensed providers operating in Singapore-no exceptions.

You can still buy crypto with bank transfers, PayNow, or cash deposits. But if you try to use a Visa or Mastercard linked to a Singapore-issued account, the transaction will be blocked at the payment gateway level.

This rule protects average users from losing more than they can afford. It also reduces the risk of fraud and chargebacks, which have plagued crypto markets in other countries.

Stablecoins Are Treated Like Cash

Singapore didn’t just regulate Bitcoin and Ethereum. It created one of the world’s first clear legal frameworks for stablecoins. Issuers must now prove they hold 100% reserves in approved assets-like Singapore government bonds, U.S. Treasuries, or gold-backed deposits-and submit monthly audits.

No algorithmic stablecoins. No unbacked tokens. No “stablecoins” that rely on complex formulas or speculative collateral. If you want to issue a stablecoin in Singapore, it must be fully backed, redeemable on demand, and audited by a MAS-approved firm.

This has made Singapore a magnet for institutional stablecoin projects. Tether and Circle have both expanded their Singapore operations since 2025, drawn by the clarity and trustworthiness of the rules.

Why This Matters for Global Crypto

Compared to other major economies, Singapore’s approach is starkly different.

The U.S. is still stuck in regulatory limbo-different agencies fighting over jurisdiction, lawsuits dragging on for years, and no clear path for startups. The EU’s MiCAR law is complex and still rolling out, with transitional periods and vague definitions. Hong Kong introduced licensing in 2024 but hasn’t yet enforced the extraterritorial rules that Singapore did.

Singapore’s model is simple: if you operate from here, you follow our rules-no matter who your customers are. That’s why some crypto firms left. But others stayed. The ones that stayed now operate with certainty. They know what’s allowed. They know what’s not. They know the penalties.

This predictability attracts institutional investors, hedge funds, and asset managers who need compliance to be bulletproof. It’s not about being the most crypto-friendly place. It’s about being the most trustworthy.

Banned credit card disintegrating as secure stablecoin hologram floats above investors.

What Happens If You Don’t Comply?

The penalties are brutal. Unlicensed operators caught after June 30, 2025, face:

  • Fines up to SGD 2 million
  • Up to 10 years in prison for company directors
  • Freezing of bank accounts and digital assets
  • Public blacklisting by MAS
MAS doesn’t warn. They don’t send letters. They monitor blockchain activity, partner with international regulators, and track domain registrations. If you’re running an unlicensed exchange from a Singapore apartment, they’ll find you.

Who’s Licensed Now?

As of October 2025, only 12 companies hold full DTSP licenses under FSMA. Most are established firms: DBS Bank’s digital asset arm, Coinbase Singapore, Kraken’s Singapore entity, and a few local players like Luno and Coinhako that restructured completely to meet the new standards.

No new licenses have been issued since July 2025. MAS is not accepting applications for new DTSPs until further notice. The message is clear: quality over quantity. Fewer players, but each one is tightly controlled.

What’s Next?

MAS is now focusing on two areas: tokenization of real-world assets (like property and bonds) and central bank digital currency (CBDC) pilots. They’re not banning innovation-they’re channeling it into areas where regulation can keep pace.

The future of crypto in Singapore won’t be about wild price swings or meme coins. It’ll be about secure, regulated, institutional-grade digital assets that integrate with the global financial system.

If you’re thinking of launching a crypto business in Asia, Singapore isn’t the easiest place to start. But it’s the safest. And in finance, safety often matters more than speed.

Do I need a license to hold crypto personally in Singapore?

No. Singapore’s regulations only apply to businesses offering crypto services-exchanges, wallets, trading platforms, or staking services. If you’re buying and holding Bitcoin or Ethereum for yourself, you don’t need a license. You just need to report any capital gains for tax purposes.

Can foreign crypto companies operate in Singapore without a license?

Only if they have no physical presence, employees, or operational base in Singapore. If a foreign company has even one employee working from Singapore, or uses a Singapore-based server to serve customers, it’s considered a domestic operation and must be licensed. MAS enforces this strictly.

Are decentralized exchanges (DEXs) banned in Singapore?

Not banned-but if a DEX has any ties to Singapore-like developers based here, marketing targeted at locals, or a Singapore-based legal entity-it must comply with licensing rules. Purely offshore, anonymous DEXs with no Singapore connection are not regulated, but they can’t legally operate from within the country.

Can I use a VPN to access foreign crypto exchanges from Singapore?

Technically, yes. There’s no law against using a VPN to access foreign platforms. But if you’re using a Singapore bank account to fund those exchanges, you risk account freezes. Banks monitor transactions and flag transfers to unlicensed platforms. MAS advises against it for risk and compliance reasons.

What’s the difference between a DPT license and a CMS license?

A Digital Payment Token (DPT) license under the Payment Services Act covers basic crypto services like trading and custody. A Capital Markets Services (CMS) license is required if you’re dealing with tokens that qualify as securities-like utility tokens with profit-sharing rights or tokenized stocks. Many platforms need both licenses if they offer both types of assets.

21 Comments

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    Heather Hartman

    November 30, 2025 AT 19:52

    This is actually kind of beautiful. Singapore didn't just regulate crypto-they built a temple for it. No chaos, no gray zones, just clear rules that protect people and attract real money. Finally, someone gets it.

    Other countries are still arguing over whether crypto is a currency or a security. Singapore just said, 'Here's how it works.' And now the adults are moving in.

    I'm not saying it's perfect, but it's the first time I've seen a government treat digital assets like they matter-without being hysterical or clueless.

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    Paul McNair

    December 2, 2025 AT 07:49

    Let me tell you something-this is what happens when you stop treating crypto like a Wild West carnival and start treating it like finance. Singapore didn’t ban innovation. They just made sure the people running the rides had a license, insurance, and a background check.

    Meanwhile, the U.S. is still letting influencers sell Dogecoin on TikTok while the SEC yells into a void. No wonder institutions are fleeing to Asia.

    Respect. Pure and simple.

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    Mohamed Haybe

    December 3, 2025 AT 21:40

    Typical western nonsense pretending to be regulation
    India knows real control
    They let crypto die quietly here
    Why pay for licenses when you can just ban it and move on
    Singapore is just another capitalist puppet
    Real power is silence
    Not paperwork

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    Marsha Enright

    December 5, 2025 AT 05:46

    Yessss!! This is the model we should be copying 🙌

    Credit card ban? YES. 100% reserve stablecoins? YES. No more sketchy exchanges? YES.

    It’s not about being ‘crypto-friendly’-it’s about being ‘investor-safe.’ And honestly? That’s way more important.

    Shoutout to MAS for having backbone. Most regulators are just scared of being wrong.

    PS: If you’re still using a VPN to dodge rules… maybe take a breath and just use a bank transfer 😊

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    Andrew Brady

    December 5, 2025 AT 23:26

    Wait… so you’re telling me the government is monitoring every single crypto transaction? And they’re tracking wallet addresses? And they’re forcing exchanges to collect personal data?

    That’s not regulation. That’s surveillance under a fancy name.

    Next they’ll be requiring biometric scans to buy Bitcoin. This isn’t finance-it’s the beginning of a financial dictatorship. Wake up, people.

    They’re not protecting you. They’re controlling you. And they’re using ‘compliance’ as the cover.

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    Sharmishtha Sohoni

    December 6, 2025 AT 23:52

    So if I’m a developer in Bangalore working remotely for a Singapore-based DEX, am I breaking the law?

    What if I use a cloud server in Singapore but live in Delhi?

    What if my code is open source but hosted on a Singapore domain?

    How far does ‘presence’ stretch?

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    Althea Gwen

    December 7, 2025 AT 21:48

    Wow. So Singapore made crypto boring. 🥱

    Great. Now we can all sleep at night knowing our Bitcoin is ‘compliant’ and ‘audited.’

    Where’s the fun? Where’s the rebellion? Where’s the moon?

    They turned crypto into a bank loan with extra steps. I miss the chaos.

    At least now I know who to blame when my portfolio tanks 😒

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    Durgesh Mehta

    December 9, 2025 AT 00:32

    Really appreciate how they drew clear lines
    Too many places just throw rules at the wall and hope something sticks
    Here they said what’s allowed and what’s not
    Simple
    Clear
    Works

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    Sarah Roberge

    December 9, 2025 AT 06:18

    Okay but like… if you’re gonna be this strict… why not just ban it all? Why make people jump through hoops for a license only to then freeze applications? That’s not regulation-that’s a trap. MAS is just playing hard to get while pretending to be professional. And the fact that they’re not taking new applicants? That’s not safety, that’s gatekeeping. And it’s elitist. And it’s not fair to startups. And I’m tired of this ‘quality over quantity’ BS when it just means the same 12 billionaires get to keep playing while everyone else gets locked out.

    Also, why is everyone acting like this is genius? It’s just control dressed up as order.

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    Jess Bothun-Berg

    December 11, 2025 AT 00:48

    Let’s be real: this isn’t ‘regulation.’ It’s a bureaucratic prison. 12 licenses? No new applications? You’re not building a financial ecosystem-you’re building a cartel. And you’re calling it ‘trust.’

    Meanwhile, in the real world, decentralized protocols don’t need licenses-they need freedom.

    And now, thanks to Singapore, the entire industry is being strangled by compliance theater. This isn’t innovation. It’s institutional capture.

    And the fact that people are applauding this? That’s the real tragedy.

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    Steve Savage

    December 12, 2025 AT 19:31

    There’s something deeply wise about this approach.

    Most countries chase hype. Singapore chased stability.

    They didn’t try to be the biggest crypto hub. They tried to be the most reliable one.

    And in finance-where trust is the only real currency-that’s worth more than any bull run.

    It’s not sexy. It’s not viral. But it’s the kind of thinking that lasts.

    Maybe the future isn’t about moon shots.

    Maybe it’s about landing safely.

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    Joe B.

    December 13, 2025 AT 03:21

    Let’s break this down statistically because the narrative is misleading. 12 licensed entities? That’s 0.0003% of global crypto platforms. The rest? Either offshore, underground, or dead. MAS didn’t ‘clean up’ the market-they just moved the problem elsewhere.

    And the ‘100% reserve’ stablecoin rule? Great. Except Tether and Circle already had that. This doesn’t stop fraud-it just makes it more expensive to hide. Meanwhile, the real risk? Interoperability. Cross-border liquidity. Smart contract exploits. None of that is addressed.

    This is regulatory theater with a side of PR. Institutions love it because they don’t want competition. Retail? They’re just being pushed into the shadows. And don’t even get me started on the credit card ban-it’s paternalistic and ignores behavioral economics. People gamble. That’s human. Don’t punish the medium. Fix the behavior.

    Also-why is no one talking about how this makes Singapore a target for state-sponsored laundering? If you’re the only game in town with deep pockets and tight oversight, you’re the perfect front for dirty money. The regulators think they’re safe. They’re not. They’re just the most visible.

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    Rod Filoteo

    December 14, 2025 AT 03:42

    They’re not regulating crypto they’re creating a digital police state
    They track every wallet
    They ban credit cards
    They force you to hand over your ID to a private company that answers to the state
    And you call this freedom?

    Wake up people
    This is the same playbook they used in China
    Only now they’re calling it ‘trust’
    Next they’ll be scanning your face to buy ETH
    And you’ll thank them for it
    Sheeple

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    Layla Hu

    December 14, 2025 AT 22:58

    I like that they didn’t overreach. No bans. No panic. Just clear, enforceable rules. It’s rare to see a government act with this much restraint and clarity.

    Not everything needs to be loud to be effective.

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    Nora Colombie

    December 15, 2025 AT 08:40

    Oh wow, Singapore is so brave for making companies get licenses. What a revolutionary idea. Meanwhile, the U.S. is letting hedge funds run wild with DeFi exploits and no one bats an eye. But hey, at least Singapore has ‘trust.’

    Let me guess-the next thing they’ll do is require citizens to report their crypto holdings to the tax office? Oh wait, they already do that. So what’s the difference? Just more paperwork for people who aren’t rich enough to afford lawyers.

    This isn’t regulation. It’s elitist gatekeeping with a Singaporean flag on it.

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    Greer Dauphin

    December 15, 2025 AT 19:09

    So… you can’t use a credit card to buy crypto, but you can use PayNow? That’s like banning soda from convenience stores but letting people buy it from vending machines.

    Who decided this? And why? Did someone get rich off PayNow partnerships?

    Also-why is everyone acting like this is genius? It’s just replacing one form of control with another. And it’s weirdly… bureaucratic.

    Like… who approved the ‘SGD 3 million monthly’ cutoff? Was there a committee? Did they vote? Did someone bring donuts?

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    Bhoomika Agarwal

    December 16, 2025 AT 15:12

    Singapore thinks it’s the center of the crypto world
    But really it’s just a rich man’s sandbox
    Meanwhile in India we don’t need licenses to be free
    We don’t need MAS to tell us what’s safe
    We just use crypto and laugh at your rules
    Your ‘trust’ is just fear in a suit

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    Katherine Alva

    December 17, 2025 AT 10:28

    There’s a quiet beauty in this.

    They didn’t try to control the future. They just made sure the foundation wouldn’t collapse.

    It’s not about Bitcoin or stablecoins.

    It’s about whether we can build something that lasts.

    And for once, someone chose longevity over hype.

    That’s rare.

    That’s worth honoring.

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    Nelia Mcquiston

    December 18, 2025 AT 17:05

    I think the real win here isn’t the rules-it’s the humility.

    They didn’t say ‘crypto is the future.’ They said ‘if you’re doing this here, you must do it right.’

    No grand pronouncements. No cult of innovation. Just responsibility.

    And maybe that’s the most radical thing of all.

    In a world obsessed with disruption, they chose stewardship.

    And I think… that’s what finance actually needs.

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    Mark Stoehr

    December 20, 2025 AT 10:22

    12 licenses and no new ones? So they shut the door after letting in the insiders
    Typical
    They call it quality but its just protectionism
    And the credit card ban? That’s not protecting people
    Its just making it harder for regular folks to get in
    Meanwhile the rich still buy through shell companies
    So who’s really being protected?
    Not you
    Not me
    Just the ones who already had the money

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    Heather Hartman

    December 22, 2025 AT 07:37

    That’s the thing-Singapore didn’t just regulate. They created a filter.

    Now the bad actors can’t even pretend to be legitimate. They have to leave or go dark.

    And yeah, the license cap feels arbitrary-but it’s also a signal: we’re not here to grow fast. We’re here to grow right.

    It’s not perfect. But it’s the most honest system I’ve seen yet.

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