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Singapore Crypto Regulations 2025: Guide for Investors

Overview of Crypto Regulations in Singapore

Singapore does not use a single “crypto law.” The Monetary Authority of Singapore (MAS) supervises digital‑asset activity through several regimes:

• Payment Services Act (PSA): Platforms that buy, sell, or facilitate exchange of digital payment tokens (DPTs)must register and obtain a licence as DPT service providers. Core obligations include AML/CFT, Travel Rulecompliance, risk management, and ongoing reporting. 2024–2025 updates to the PSA framework (e.g., Notice PSN02) tighten customer‑asset safeguards and business‑conduct rules, including for firms serving overseas customers from Singapore.
• Securities and Futures Act (SFA): Tokens that are capital markets products (e.g., tokenised notes, shares, or units in a fund) trigger SFA obligations and may require a Capital Markets Services (CMS) licence and full market‑conduct compliance.
• Stablecoin framework: MAS finalised a regime for single‑currency stablecoins (SCS) pegged to SGD or G10 currencies. Regulated issuers must hold high‑quality reserves, keep them segregated with approved custodians, meet redemption within five business days, and use clear labelling so consumers can identify MAS‑regulated SCS.
• Retail safeguards for DPTs: Phasing in across 2024–2025: segregation of customer assets (trust custody, daily reconciliation), board‑level accountability, token‑listing due‑diligence, prominent risk warnings, no incentives, no credit/leverage for retail customers, and no lending/staking of retail customers’ assets by DPT service providers.

Policy meets practice: Singapore is also a hub for tokenisation pilots. DBS debuted tokenised structured notes on Ethereum in 2025, while asset managers expand access—see Franklin Templeton launching Singapore’s first tokenised fund for retail investors.

Tax Implications for Traders

Singapore has no capital gains tax, but crypto profits can still be taxable income when you deal as a trade/business (e.g., frequent dealing, market‑making, mining/staking at scale). Factors such as frequency, sophistication, financing, and intention matter.

• Investors: Long‑term disposals of crypto held on capital account are typically not taxed.
• Businesses/traders: Profits form part of taxable income.
• GST (VAT): Since 1 Jan 2020, supplies of digital payment tokens are generally exempt from GST. Paying for goods/services in DPTs is treated like paying with money—the goods/service may be taxable, but the DPT transfer itself is disregarded for GST. Exchange/platform fees follow normal GST rules.

Keep five years of records: wallet addresses, timestamps, cost bases, fiat values, and fees. DeFi and NFTs can generate income and disposals—document facts and consult a tax professional if operating at scale.

Exchange Compliance Requirements

If you operate—or use—platforms in Singapore, expect the following in 2025:

• Licensing: DPT providers must be licensed under the PSA. Activities involving capital markets products require SFA authorisation (CMS licence). Firms serving non‑Singapore customers from Singapore still fall under parts of the regime.
• AML/CFT & Travel Rule: KYC, sanctions screening, and originator/beneficiary data exchange are mandatory for qualifying transfers. Address‑ownership checks and transfer delays are common as providers comply.
• Custody & segregation: Customer assets must be segregated with daily reconciliation and independent custody controls. Providers should publish clear disclosures and maintain public status pages for incidents.
• Retail safeguards: No incentives to trade, no credit/leverage, no rehypothecation/lending of retail customer assets. Token‑listing due diligence and in‑app risk warnings are required.

These guardrails have not stalled innovation: regulated tokenisation is expanding under MAS oversight—see DBS tokenised notes—while global managers test compliant retail access via tokenised funds such as Franklin Templeton’s.

Tips to Stay Secure and Legal

• Use licensed venues. Prefer platforms listed on MAS registers; look for custody details, cold‑storage percentages, and independent attestations.
• Enable strong 2FA. TOTP or security keys—not SMS. Withdraw long‑term holdings to a hardware wallet you control.
• Beware promotions. MAS restricts DPT marketing; aggressive ads, incentives, or “guaranteed yield” offers are red flags.
• Verify contracts. For DeFi, confirm pool/router addresses from official docs; read token approvals carefully before signing.
• Keep records. Export exchange CSVs monthly, label internal transfers, and store signed statements to reduce compliance friction.

Resources for Singapore Investors

• Tokenisation in action: DBS debuts tokenised structured notes on Ethereum.
• Retail access broadens: Franklin Templeton launches Singapore’s first tokenised fund for retail investors.

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This guide is educational, not legal or tax advice. Regulations evolve quickly; confirm details on MAS and IRAS sites and consult qualified professionals for your situation.

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