Key Takeaways
- All Singapore-based crypto firms offering overseas services must be licensed under FSMA by June 30, 2025.
- Retail protections now ban credit purchases, incentives, and require investor risk tests.
- The Travel Rule mandates ID verification for transactions over SGD 1,500.
- DeFi frontends and wallets may be subject to MAS rules if they serve retail markets or generate revenue from token-based services.
Singapore has long been considered one of the most crypto-friendly jurisdictions in Asia. But as of mid-2025, that openness comes with sharp new rules. The Monetary Authority of Singapore (MAS) is no longer taking a light-touch approach, crypto firms now face tighter licensing , stricter asset handling standards, and a strong push for transparency.
Here’s what the new 2025 crypto regulations mean for exchanges, wallets, DeFi apps, and everyday crypto users operating in or from Singapore.
Is Cryptocurrency Legal in Singapore in 2025?
Yes, cryptocurrency is legal in Singapore. The country has adopted a progressive but firm regulatory approach that allows individuals and businesses to buy, sell, and use digital assets, provided they comply with the rules set by the MAS.
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In 2025, MAS has further tightened oversight, particularly for firms offering services overseas or dealing with retail customers. While you can legally own and trade crypto like Bitcoin and Ether, new rules ban the use of credit cards for purchases and restrict promotional incentives.
Operating a crypto business without the proper licenses can result in serious penalties. Singapore continues to support innovation in blockchain and Web3, but under a regulated framework designed to protect consumers and prevent misuse.
Who Regulates Cryptocurrency in Singapore?
The MAS is the sole financial regulator overseeing cryptocurrency activity in the country. MAS governs everything from licensing requirements for crypto exchanges and wallet providers to consumer protection rules, anti-money laundering (AML) compliance, and enforcement of the Financial Services and Markets Act (FSMA).
In 2025, MAS expanded its oversight to include Singapore-based firms offering crypto services overseas, closing regulatory loopholes. The agency’s goal is to create a safe and sustainable crypto environment without stifling technological innovation.
MAS Licensing Now Required for Overseas Operations
Starting June 30, 2025, all crypto firms based in Singapore that offer services overseas must hold a license under the FSMA. That includes wallets, DeFi frontends, and exchanges targeting users beyond Singapore’s borders.
Failure to comply comes with harsh consequences—fines up to SGD 250,000 and prison terms of up to 3 years. MAS says this move closes a regulatory gap that allows firms to bypass domestic rules while profiting abroad.
Consumer Protection Is Front and Center
To protect retail investors, especially as more enter the market during the 2025 bull run, MAS has implemented several key rules for licensed Digital Payment Token (DPT) service providers:
- Customer asset segregation: Crypto companies must keep client funds separate from company funds. This reduces the risk of losses if a company becomes insolvent.
- Daily reconciliation and independent custody: Firms must reconcile balances daily and are encouraged to use third-party custodians for safekeeping of digital assets.
- No incentives or leverage for retail traders: Promotions like airdrops, referral bonuses, or sign-up rewards are banned for retail customers. Additionally, credit cards and leverage-based products cannot be used to buy crypto within Singapore.
- Mandatory risk awareness assessments: Before trading, retail users must pass a knowledge test proving they understand the volatility and risks of crypto assets.
These rules aim to prevent another FTX-style disaster and promote a safer, more informed retail environment.
Licensed Digital Payment Token Service Providers in Singapore
As of June 2025, the MAS has licensed several entities as Major Payment Institutions (MPIs) authorized to provide DPT services, such as:
- Anchorage Digital Singapore Pte. Ltd.
- BitGo Singapore Pte. Ltd.
- Blockchain.com (Singapore) Pte. Ltd.
- Bsquared Technology Pte. Ltd.
- Circle Internet Singapore Pte. Ltd.
- Coinbase Singapore Pte. Ltd.
- DBS Vickers Securities (Singapore) Pte. Ltd.
- Digital Treasures Center Pte. Ltd.
- Fly Wing Technologies Pte. Ltd.
- FOMO Pay Pte. Ltd.
These entities have met MAS’s stringent requirements, including robust AML and countering the financing of terrorism (CFT) measures, secure custody solutions, and comprehensive consumer protection protocols. Their licensing signifies compliance with Singapore’s regulatory standards for digital payment services.
The Travel Rule Hits Crypto Transfers
Singapore has also adopted the FATF’s “Travel Rule” to combat money laundering and terrorism financing. Under this rule:
- Crypto providers must collect and share sender and recipient details for transactions over SGD 1,500 (around USD 1,100).
- This applies to all Virtual Asset Service Providers (VASPs), including wallets, centralized exchanges, and OTC platforms.
The result? More friction in cross-border transactions, but also greater accountability in the digital asset space.
What New Crypto Rules in Singapore Means for Crypto Firms
Whether you’re a global exchange with a Singapore office or a small wallet app serving international users, the message is clear: Comply or shut down.
To stay operational, crypto companies must:
- Secure appropriate licenses under FSMA and the Payment Services Act (PSA)
- Implement airtight AML/CFT protocols
- Avoid marketing gimmicks aimed at retail investors
- Offer robust user onboarding, education, and risk disclosures
Firms that can’t meet these standards may need to withdraw from Singapore or pivot to enterprise or B2B models.
Even decentralized applications are feeling the heat. While smart contracts themselves remain permissionless, any web app, frontend, or service provider operating from Singapore must now comply with MAS rules if it facilitates access to tokens or earns revenue from them.
This includes:
- Frontends for lending/borrowing apps
- On-chain swaps and bridge services
- Yield platforms that promote tokenized returns
Non-custodial wallets (like MetaMask-style tools) may be exempt from some of these rules, but only if they don’t hold user funds or operate as financial intermediaries.
Can You Buy Crypto in Singapore with a Credit Card in 2025?
No, as of 2025, using locally issued credit cards to buy cryptocurrencies is prohibited in Singapore. This rule is part of the Monetary Authority of Singapore’s broader effort to protect retail investors from risky behavior and excessive leverage. Instead, users must rely on direct bank transfers, debit cards, or regulated payment methods approved by licensed DPT providers.
The ban applies to all crypto purchases by Singapore residents and is designed to limit speculative borrowing for digital assets. This move also aligns with global best practices aimed at reducing consumer debt exposure in highly volatile markets like crypto.
Conclusion
While the clampdown might seem harsh, many in the crypto community see Singapore’s approach as a path to long-term legitimacy. By setting a clear regulatory framework, MAS is sending a message: compliant projects are welcome, but free-for-all crypto is not.
In a post-FTX, post-regulatory vacuum world, this could be exactly what Web3 builders and serious investors need: structure, clarity, and trust.
FAQs
Can Singapore residents still use credit cards to buy Bitcoin or other cryptocurrencies?
No. MAS has banned the use of locally issued credit cards for purchasing digital payment tokens (DPTs) to protect retail investors from taking on excessive debt and risk.
Are decentralized apps affected by these new regulations?
Yes, if the frontend, service provider, or team operates from Singapore. While smart contracts remain permissionless, any interface or platform that facilitates access to token services must comply with MAS requirements if it targets retail users.
What is the Crypto Travel Rule, and how does it affect users in Singapore?
The Travel Rule requires Virtual Asset Service Providers (VASPs) to collect and share identifying information for crypto transactions above SGD 1,500. This enhances anti-money laundering efforts and may impact how cross-border crypto transfers are handled by exchanges and wallets.
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