As global regulatory scrutiny intensifies around cryptocurrency platforms, Singapore is increasingly being viewed as a safe harbor for digital asset innovation. With the country’s financial authority granting in-principle approval to select crypto exchanges under its robust regulatory framework, the city-state is positioning itself at the forefront of responsible blockchain development.
This strategic shift comes amid growing crackdowns in major financial jurisdictions — from the U.S. and U.K. to Hong Kong and the EU — where regulators are tightening oversight on unregistered securities, opaque trading practices, and risks to retail investors. In contrast, Singapore has taken a balanced approach: fostering fintech growth while enforcing strict anti-money laundering (AML) and consumer protection standards.
👉 Discover how Singapore's clear crypto regulations are attracting global platforms
Regulatory Clarity Through the Payment Services Act
At the heart of Singapore’s emerging dominance in the digital asset space is the Payment Services Act (PSA), which came into effect in January 2020. The PSA grants the Monetary Authority of Singapore (MAS) expanded oversight over digital payment token (DPT) services, including cryptocurrency exchanges.
Under this law, all DPT service providers operating in Singapore must obtain a license or operate under exemption status. To qualify, companies must demonstrate strong governance, risk management systems, and compliance with AML/CFT (Combating the Financing of Terrorism) requirements. Notably, at least one director must be a Singapore citizen or permanent resident — a requirement that encourages local accountability.
As of mid-2025, around 170 firms have applied for licensing. While 30 withdrew their applications and two were rejected, approximately 90 continue to operate under temporary exemptions. These include well-known names like Coinbase, Ripple, and BitGo.
However, a significant milestone was reached on August 2, when Independent Reserve, an Australian-based exchange, announced it had received in-principle approval from MAS — making it one of the first crypto platforms to clear this critical regulatory hurdle.
“Being among the first exchanges to receive in-principle approval reflects our strong operational policies, procedures, and risk controls. It also provides clarity for industry participants and security for customers.”
This approval signals more than just regulatory compliance — it represents confidence in Singapore’s long-term commitment to building a trustworthy digital economy.
Why Global Platforms Are Choosing Singapore
Singapore’s appeal lies not only in its regulatory clarity but also in its strategic position as Asia’s leading financial hub. The country offers political stability, world-class infrastructure, and a pro-innovation policy environment — making it ideal for fintech expansion.
In June 2025, Gemini, the U.S.-based cryptocurrency platform co-founded by the Winklevoss twins, chose Singapore as its Asia-Pacific headquarters. Jeremy Ng, appointed as Gemini’s regional head, emphasized the nation’s strengths:
“Singapore is a major financial center in Asia with deep access to private wealth clients. We’ve engaged with numerous wealth managers who are actively seeking crypto solutions. Our platform allows retail and institutional investors across APAC to buy, sell, store, and earn yield on over 40 cryptocurrencies, with fiat support in SGD, AUD, and HKD.”
Gemini is also collaborating with SingPass, Singapore’s national digital identity system, to streamline user verification — enhancing both security and user experience.
Similarly, Binance CEO Changpeng Zhao has relocated operations to Singapore, citing favorable business conditions and proximity to key markets. Ethereum co-founder Vitalik Buterin has also been spotted in the city-state, underscoring its growing reputation as a nexus for blockchain thought leadership.
👉 See how top crypto firms are establishing regional hubs in regulated markets
Balancing Innovation and Risk: MAS’s Dual Mandate
While welcoming innovation, MAS remains vigilant about financial stability and investor protection. Unlike some central banks that dismiss cryptocurrencies entirely, MAS acknowledges their potential while urging caution.
Tharman Shanmugaratnam, Senior Minister and former MAS Chair, stated clearly:
“Investing in crypto assets is risky and generally unsuitable for retail investors. Prices are highly speculative. Individuals who suffer losses may be referred to Credit Counselling Singapore for debt management assistance.”
This nuanced stance — neither outright rejection nor blind endorsement — sets Singapore apart. Instead of leaving investors stranded during downturns, MAS promotes responsible engagement through education and post-loss support mechanisms.
Moreover, in a landmark speech on June 28, MAS Managing Director Ravi Menon addressed the future of decentralized finance (DeFi):
“Technology is enabling a completely different model of financial infrastructure. Open cryptographic networks can enhance inclusion and innovation. When even individuals can access core financial systems directly, we unlock greater competition and participation.”
Menon highlighted the critical question facing all nations:
“What is the right balance between public and private roles in money? One extreme is a fully centralized system with only central bank currency; the other is a decentralized world dominated by private currencies.”
His conclusion? Each country must find its own path — and Singapore’s path prioritizes pragmatic regulation, technological openness, and systemic resilience.
Core Keywords Driving Visibility
To align with search intent and improve SEO performance, key terms naturally integrated throughout this article include:
- Singapore cryptocurrency regulation
- MAS in-principle approval
- Payment Services Act crypto
- Digital Payment Token license
- crypto exchange Singapore
- regulated crypto platform Asia
- blockchain innovation hub
- fintech licensing Singapore
These keywords reflect high-volume queries from entrepreneurs, investors, and compliance officers seeking clarity on jurisdictional advantages.
👉 Learn how regulated jurisdictions are shaping the future of crypto
Frequently Asked Questions (FAQ)
Q: What does "in-principle approval" mean for crypto exchanges in Singapore?
A: It means MAS has preliminarily accepted an exchange’s application for a full license under the Payment Services Act. The firm must still meet final conditions before receiving official authorization.
Q: Is cryptocurrency legal in Singapore?
A: Yes. While MAS warns retail investors about volatility and fraud risks, digital assets are legally recognized when used in compliant frameworks. Trading and investment are permitted through licensed platforms.
Q: Can foreign crypto companies operate in Singapore without a license?
A: No. All DPT service providers must either obtain a license or operate under a temporary exemption granted by MAS. Unlicensed operations targeting Singapore users are prohibited.
Q: How does Singapore compare to other Asian financial centers like Hong Kong?
A: Both offer progressive crypto policies, but Singapore provides earlier regulatory certainty through PSA enforcement since 2020. Its consistent stance has attracted more early-stage institutional adoption.
Q: Does MAS support decentralized finance (DeFi)?
A: MAS recognizes DeFi’s innovative potential but stresses the need for safeguards against systemic risk, fraud, and illicit use. Regulatory sandboxes allow controlled experimentation.
Q: Are there tax implications for crypto trading in Singapore?
A: Gains from personal crypto investments are generally not taxed. However, businesses conducting regular trading may be subject to income tax. GST does not apply to crypto transactions as they are treated as barter trade.
Conclusion: A Model for Responsible Crypto Growth
Singapore’s journey reflects a deliberate effort to become a global benchmark for balanced digital asset regulation. By combining early legislative action, transparent licensing processes, and investor safeguards, MAS has created an environment where innovation thrives within clear boundaries.
For crypto platforms navigating an uncertain global landscape, Singapore offers more than just refuge — it offers legitimacy. As more firms seek in-principle approvals and establish regional bases, the city-state may well become the gold standard for regulated blockchain ecosystems.
The message is clear: innovation doesn’t require lawlessness. With thoughtful oversight, technology and trust can grow together — and Singapore is proving it.