Looking at Singapore Crypto Rules: Here is a New Detail You Need to Know

Singapore has long been seen as a crypto-friendly hub in Asia. But as of 2025, the country has introduced sweeping changes that are reshaping how exchanges, wallets, and decentralised platforms operate. 

With the Monetary Authority of Singapore (MAS) pushing stricter licensing, consumer protections, and compliance rules, crypto in Singapore is no longer a lightly regulated sector. Here’s what these changes mean for those in or operating from Singapore.

Mandatory Licensing for Overseas Crypto Services by June 30, 2025

One of the most significant updates is the requirement that all crypto firms based in Singapore must obtain a licence under the Financial Services and Markets Act (FSMA) if they offer services to overseas clients. 

This covers not only centralised exchanges but also wallets, token-based apps, and even marketing services that promote digital tokens.

The deadline is clear and strict: June 30, 2025. MAS has explicitly stated that there will be no grace period, no phased implementation, and no exceptions. 

Any Singapore-based entity serving foreign markets without a Digital Token Service Provider (DTSP) licence must shut down cross-border activity or face legal consequences.

These consequences are not light. Firms that fail to comply may be fined up to SGD 250,000 (around $185,000) and face up to 3 years in prison. MAS has also made it clear that the bar for obtaining a licence is high. 

Due to concerns around Anti–Money Laundering (AML) and Counter–Terrorism Financing (CFT), the regulator has said approvals will only be issued in “extremely limited circumstances.”

Even part-time projects, side ventures, or firms with a small number of international users fall under this rule. MAS is focusing on where a business is incorporated rather than where the servers or users are located. 

This move aims to prevent firms from using Singapore as a reputational cover while operating under looser regulations abroad.

The message from MAS is clear: you either meet the new standards or exit the business entirely. Many firms are already relocating to other jurisdictions like Panama, Dubai, or Hong Kong, where licensing is seen as more accessible.

Read also: GENIUS Act Explained: A New Era for Stablecoin Regulation

Retail Users Face Stricter Protections and Trading Restrictions

For everyday crypto users, especially those in the retail segment, the new rules bring a significant shift in how crypto trading is conducted. MAS has introduced several restrictions to reduce risk exposure and promote more responsible participation.

First, credit cards can no longer be used to purchase crypto in Singapore. This ban is aimed at curbing impulsive or leveraged buying behaviour, which MAS believes exposes users to unnecessary financial risk. 

Instead, users must use bank transfers or other regulated payment channels provided by licensed entities.

Second, MAS now requires that all retail users pass a risk awareness test before they can begin trading. These assessments ensure that users understand the nature of digital assets, including their price volatility and the potential for loss.

Third, crypto incentives such as airdrops, referral bonuses, and sign-up rewards are now banned for retail customers. The idea is to eliminate marketing tactics that may lure inexperienced users into trading without understanding the risks.

Moreover, crypto service providers must keep customer funds separate from company assets, reconcile balances daily, and are strongly encouraged to use independent custodians for asset storage. 

These operational standards are meant to avoid collapses similar to what happened with FTX, where user funds were misused without proper oversight.

Overall, these changes mark a shift from a relatively open retail environment to one that prioritises caution and consumer safety. For traders seeking reliable platforms under these new conditions, it is now more important than ever to use licensed and transparent services.

Read also: FTX Launches Second Phase of $5 Billion Repayment 

Travel Rule and DeFi Platforms Now Under Closer Scrutiny

Another key development in Singapore’s 2025 crypto framework is the full enforcement of the “Travel Rule.” 

Initially introduced in 2020 but now reinforced, this rule aligns with global FATF standards and requires Virtual Asset Service Providers (VASPs) to share identity details for transfers above SGD 1,500 (around $1,100).

This means that whenever a user sends or receives crypto beyond this threshold, the service provider must collect and transmit personally identifiable information (PII) about both the sender and recipient. 

While this introduces more friction to the process, especially for cross-border payments, the goal is to reduce the misuse of crypto for illegal activity.

Interestingly, transactions involving non-custodial wallets are technically exempt from these Travel Rule obligations. 

However, MAS expects providers to treat them as high-risk and apply enhanced due diligence. This could include verifying ownership of wallets or confirming third-party identities.

Decentralised platforms are not being left out either. While the smart contracts themselves remain decentralised and permissionless, any interface or frontend based in Singapore that facilitates trading, lending, or token exchanges must comply if they earn revenue or serve retail users.

For wallet providers, particularly non-custodial options, the rules are a bit more flexible. If the wallet does not hold funds or act as an intermediary, it may avoid licensing. But if it also provides token swaps or earns from fees, MAS could deem it within the scope of regulation.

The broader trend here is clear: Singapore is tightening oversight on every corner of the crypto space, from centralised exchanges to the decentralised tools built on blockchain infrastructure.

Read also: What Is DexScreener and How to Use It

Conclusion

Singapore’s crypto regulations in 2025 may feel strict, but they bring needed structure to a market that demands maturity. 

By enforcing high standards, MAS aims to protect users and ensure only well-governed firms remain. For anyone trading crypto under this new system, safety and compliance now come first.

For an easier and safer trading experience under these new rules, Bitrue offers a licensed, secure platform with transparent operations and retail protections in place. Explore Bitrue today to trade confidently in a changing landscape.

Read also: New Crypto Mining Regulation: Russia's Way 

Frequently Asked Questions

1. Is cryptocurrency still legal in Singapore in 2025?

Yes, it is legal. You can own and trade crypto if you use MAS-compliant platforms and follow the new rules.

2. Can I buy crypto with a credit card in Singapore?

No, using credit cards for crypto purchases is banned for residents. Bank transfers and other regulated payment options are still allowed.

3. What happens if a crypto firm doesn’t get licensed by June 30, 2025?

They must immediately stop serving overseas users or face fines up to SGD 250,000 and possible prison time.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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