Cryptocurrency Regulations and Laws in Singapore
Learn about cryptocurrency regulations in Singapore, including licensing under the Payment Services Act, crypto taxation, advertising restrictions, and how MAS regulates exchanges and digital token providers.
Singapore is widely regarded as one of the most crypto-friendly jurisdictions in the world. The government encourages innovation in blockchain and fintech, while maintaining a clear and balanced regulatory framework focused on anti-money laundering and investor protection.
Summary
Cryptocurrencies are legal in Singapore and regulated primarily under the Payment Services Act (PSA). While crypto is not legal tender, its use, trading, and custody are allowed with proper licensing. The Monetary Authority of Singapore (MAS) oversees the sector, issuing licenses to crypto exchanges and requiring compliance with AML/CFT regulations.
Legal Status
- General Use: Legal
- Trading: Legal and regulated
- Exchanges: Legal; must be licensed under the PSA
- Mining: Legal and unregulated
- ICOs & Tokens: Permitted; may be regulated under securities laws
- NFTs: Legal and typically treated as digital property
Taxation
Singapore does not impose capital gains tax, making it favorable for long-term crypto holders. However, crypto-related business income is taxable.
- Capital Gains Tax: None
- Income Tax on Crypto Earnings: Taxed if earned through business or trade
- Mining Taxation: Income from mining may be taxable if done commercially
- Reporting Requirements: Businesses must declare crypto income; individuals only if it’s income-generating
Regulatory Bodies
- Monetary Authority of Singapore (MAS): Oversees financial regulation, including crypto under the PSA and related laws
- Inland Revenue Authority of Singapore (IRAS): Responsible for tax administration, including digital asset income
- Accounting and Corporate Regulatory Authority (ACRA): May be relevant for crypto businesses operating in Singapore
Key Regulations & Laws
- 2019 Payment Services Act (PSA): Introduced licensing requirements for Digital Payment Token (DPT) service providers
- 2022 Amendments to PSA: Extended regulations to overseas crypto service providers operating in Singapore
- MAS Guidelines on DPT Advertising: Banned public advertising of crypto services to reduce retail speculation risks
Timeline of Regulatory Milestones
| Year | Event | Description |
|---|---|---|
| 2014 | MAS advisory | Warned about crypto risks; allowed use under regulation |
| 2019 | PSA enacted | Introduced licensing for exchanges and wallet providers |
| 2020 | First licenses granted | Exchanges like Independent Reserve and DBS Vickers approved |
| 2022 | Advertising restrictions | Limited marketing of crypto to general public |
| 2023 | Expansion of licensing | Included overseas firms serving local customers |
Resources
- Monetary Authority of Singapore (MAS)
- IRAS Cryptocurrency Tax Guide
- Payment Services Act (PSA)
- Digital Payment Token Guidelines
Notes
- Travel Tip for Crypto Users: While crypto payments are legal, most merchants do not accept them. Credit cards and mobile payments are more common.
- Local Adoption Trends: Singapore is a global crypto hub, with strong institutional presence, VC funding, and startup activity.
- Language Notes: All official documents and regulations are available in English.