Singapore has earned its reputation as one of Asia's premier crypto destinations. The Monetary Authority of Singapore (MAS) provides a clear, well-defined licensing framework under the Payment Services Act (PSA). Licensed Digital Payment Token (DPT) providers include major names like Coinbase, Crypto.com, and Independent Reserve. This regulatory clarity has drawn numerous crypto companies to set up their regional headquarters here.
**How Fees Compare**
Coinhako, a Singapore-based MAS-licensed exchange, charges 0.6-0.8% on simple trades, dropping to 0.3% on its Coinhako Pro platform. Independent Reserve charges 0.5% with solid SGD trading pairs. Coinbase Singapore uses standard 0.5-1.49% spreads. For the lowest fees, Binance (which is not MAS-licensed) offers 0.1% trading via P2P SGD entry. Depositing Singapore dollars via FAST instant transfer, PayNow, or Xfers is typically free, making it very affordable to get started.
**Staying Safe as a Trader in Singapore**
- Prioritize MAS-licensed DPT providers for the strongest regulatory protection
- Singapore's strict AML and CFT rules mean exchanges conduct thorough identity verification, which ultimately protects users
- Some platforms support SingPass-verified identity for faster onboarding
- Be wary of Telegram investment groups promising guaranteed returns, even in a regulated market like Singapore
- You can check the full list of licensed DPT providers at mas.gov.sg
- Hardware wallets are available locally through Shopee and Lazada
**What Sets These Exchanges Apart**
DBS Bank, one of Southeast Asia's largest financial institutions, offers institutional crypto trading through DBS Digital Exchange (DDEx) for accredited investors. Crypto.com holds a MAS license and provides a full ecosystem including a Visa card, DeFi wallet, and earn products. Independent Reserve runs an OTC desk for large SGD-to-crypto trades, making it a solid choice for high-net-worth individuals.
**Why Singapore Stands Out for Taxes**
Singapore has no capital gains tax, which makes it one of the most attractive places in the world for crypto traders. However, if your crypto trading qualifies as a business activity (meaning frequent, systematic trading for profit), your gains could be subject to income tax at the 17% corporate rate. GST does not apply to DPT transactions, a rule that has been in place since January 2020.
Crypto Regulations in Singapore
Singapore regulates crypto through the Monetary Authority of Singapore (MAS) under the Payment Services Act (PSA). Exchanges must obtain a Major Payment Institution (MPI) license. Singapore has no capital gains tax on crypto for individuals (treated as personal investments). However, businesses trading crypto as revenue are subject to income tax. MAS maintains a strict licensing regime with detailed requirements for consumer protection and AML compliance.
Frequently Asked Questions
Is crypto legal in Singapore?
Yes. Crypto is regulated under the Payment Services Act. Exchanges must obtain a DPT license from MAS.
Do I pay tax on crypto in Singapore?
Singapore has no capital gains tax. Crypto trading profits are generally tax-free unless it constitutes a business activity.
What is the best crypto exchange in Singapore?
Coinhako and Independent Reserve are top MAS-licensed options. Coinbase and Crypto.com also hold MAS licenses.
Can I use DBS to trade crypto?
DBS Digital Exchange (DDEx) offers institutional crypto trading for accredited investors and institutional clients.
What is the cheapest way to deposit SGD?
PayNow and FAST bank transfers are free on most Singapore exchanges. These are instant, making them the preferred funding method.