Crypto in Singapore 2026: Asia's Institutional Hub With 36 Licensed Exchanges and a 90 Percent Cold Storage Mandate

TL;DR: Singapore is Asia's primary institutional crypto hub, with 36 Major Payment Institution licensed exchanges and over 60 Standard Payment Institution licensed operators as of early 2026. The Monetary Authority of Singapore (MAS) regulates all crypto activity under the Payment Services Act (PSA), with a separate regime for Singapore-incorporated entities serving overseas clients under the Financial Services and Markets Act Part 9, effective June 30, 2025. New mandatory requirements include 90 percent of customer assets in cold storage, statutory trust protection for client funds ring-fenced from exchange insolvency, a Travel Rule threshold of SGD 1,500, and an outright ban on credit card purchases for retail investors. Over 2,300 crypto and blockchain companies operate in Singapore, representing $6.99 billion in combined investment from funded firms. MAS issued SGD 12 million in financial penalties across six enforcement actions in 2024. Capital gains tax does not exist in Singapore, but business income from frequent crypto trading is taxable as ordinary income. MediaCrypto note: Singapore built its reputation as Asia's crypto hub by being strict rather than permissive. The MAS licence is recognised by institutional counterparties worldwide in a way that licences from most other jurisdictions are not, because the barriers to getting and keeping it are genuinely high.

There is a common misreading of Singapore's crypto environment. The country is frequently described as crypto-friendly, and while that is accurate, it gives the wrong impression of what friendly means in this context. Singapore is friendly in the sense that it created a clear, workable regulatory pathway for crypto businesses rather than banning or ignoring them. It is not friendly in the sense of being easy, light-touch, or lenient. Getting and keeping a MAS licence requires meeting standards that the regulator itself describes as comparable to those applied to traditional financial institutions.

That combination of high barriers with genuine legal clarity is what made Singapore the preferred home for institutional-grade crypto businesses in Asia. More than 2,000 blockchain companies, 380 DPT service provider applications since the PSA's enactment, and $6.99 billion in investment from funded firms are all products of a regulatory environment that serious operators trust enough to build in.

The Regulatory Framework: Three Laws, One Regulator

Singapore regulates crypto through three primary legal frameworks, each covering a different category of activity.

The Payment Services Act 2019, significantly amended in 2024, is the primary law governing Digital Payment Token (DPT) services. DPTs are MAS's term for cryptocurrencies including Bitcoin and Ethereum. Any entity that buys, sells, exchanges, transfers, or provides custodian wallet services for DPTs in Singapore must hold either a Standard Payment Institution (SPI) or Major Payment Institution (MPI) licence from MAS. The 2024 amendments expanded the definition of DPT services to include facilitating the exchange of DPTs without taking possession of the tokens, meaning even platform operators who never directly hold customer funds now fall under the licensing requirement.

The Financial Services and Markets Act Part 9 regime, effective from June 30, 2025, requires all Singapore-incorporated digital token service providers that serve only overseas clients to obtain a Part 9 licence or cease operations. Before this, some Singapore-based firms served only international clients without a local licence, using Singapore's legal and regulatory reputation as a quality signal without actually submitting to MAS oversight. MAS closed this gap explicitly, stating that licences under Part 9 would be granted only in limited circumstances due to heightened cross-border money-laundering and terrorism financing risks, with no transitional period provided.

The Securities and Futures Act (SFA) governs tokens that qualify as capital markets products, including equity tokens, debt tokens, and units in collective investment schemes. If a token functions economically like a share or a bond, it is regulated as one under the SFA regardless of its blockchain label.

The Two Licence Tiers: SPI vs MPI

Standard Payment Institution licences are designed for smaller operators, with lower capital requirements and caps on monthly transaction volumes. Once those thresholds are exceeded, a business must transition to an MPI licence.

Major Payment Institution licences have no transaction caps but carry higher capital requirements, stricter regulatory obligations, and more demanding ongoing supervision. As of early 2026, approximately 36 entities hold full MPI licences for DPT services, and over 60 hold SPI licences. The MPI licence is what institutional counterparties, international banks, and corporate treasury programs look for when choosing a Singapore-based crypto service provider.

The application process is demanding. MAS's published indicative processing time is six months for a complete application, but complex applications routinely take nine to twelve months. Since the PSA's enactment, MAS has received over 380 DPT service provider applications, approved approximately 90, and rejected or forced withdrawal of over 200. The 90-plus-percent non-approval rate is the single most important data point for understanding how seriously MAS takes the licensing standard.

The Mandatory Security Standards That Define Singapore's Model

Several of Singapore's regulatory requirements are specifically designed to prevent the custody failures and exchange insolvencies that have caused user losses globally.

The 90 percent cold storage mandate requires exchanges to keep at least 90 percent of customer assets in offline cold wallets, with the remaining hot wallet backed by exchange capital. This is the strictest cold storage requirement of any major jurisdiction globally, and it significantly limits the exposure of customer funds to exchange-level hacks, since the vast majority of assets are stored offline and disconnected from the internet at all times.

The statutory trust requirement is the single most important consumer protection. Customer assets held by licensed exchanges must be held in a statutory trust completely ring-fenced from the exchange's own balance sheet. If an exchange becomes insolvent, customer assets are legally separate from the company's estate and must be returned to customers, not distributed to creditors. This is the protection that FTX's collapse in 2022 illustrated the absence of in unregulated jurisdictions. Singapore codified its presence.

The Travel Rule, fully in effect, requires all licensed DPT service providers to transmit originator and beneficiary information with every crypto transfer above SGD 1,500 (approximately $1,100). Below this threshold, basic identifying data is still exchanged. There is no longer a genuinely anonymous transfer option when dealing with Singapore-regulated operators.

The ban on credit card purchases prevents retail investors from taking on consumer credit to buy crypto, a practice MAS views as amplifying speculative risk for consumers with limited financial buffers.

Enforcement is Real

MAS issued SGD 12 million in financial penalties across six separate enforcement actions against DPT service providers in 2024, with violations spanning inadequate customer due diligence, failure to file suspicious transaction reports, and non-compliance with the Travel Rule. MAS also maintains a public Investor Alert List naming unlicensed entities soliciting DPT business from Singapore residents, with over 900 entities listed as of February 2026. Non-compliance with licensing rules carries fines up to SGD 250,000 and potential imprisonment for exchange executives.

The Tax Advantage

One underreported feature of Singapore's crypto environment is its tax structure. Singapore has no capital gains tax. An individual who buys Bitcoin and sells it at a profit, where that activity is not their trade or business, pays no Singapore tax on the gain. If you trade crypto frequently with the intent to make a profit, the Inland Revenue Authority of Singapore's position is that this constitutes a business and profits are taxable as income. For most retail investors who buy and hold, Singapore's effective tax rate on crypto gains is zero. For active traders, professional tax advice is warranted. This tax structure, combined with the rigorous regulatory framework, is a significant reason why Singapore has attracted both crypto businesses and high-net-worth individuals involved in the space.

About the Author

This article was researched and written by the MediaCrypto editorial team. MediaCrypto is a cryptocurrency news and market analysis publication covering Bitcoin, Ethereum, altcoins, regulatory developments, and market trends. Follow us on X at @MediaCrypto_AI and on Instagram.

FAQ — Crypto in Singapore 2026

Is crypto legal in Singapore? Yes. Cryptocurrency is legal in Singapore and regulated under the Payment Services Act by the Monetary Authority of Singapore. All exchanges and DPT service providers must hold MPI or SPI licences. There is no capital gains tax, making Singapore favorable for long-term holders.

How many crypto exchanges are licensed in Singapore? As of early 2026, approximately 36 entities hold Major Payment Institution licences and over 60 hold Standard Payment Institution licences. Over 380 applications have been submitted since the PSA's enactment, with approximately 90 approved and over 200 rejected or withdrawn.

What is the 90 percent cold storage rule? Singapore requires licensed exchanges to store at least 90 percent of customer assets in offline cold wallets, with the remaining hot wallet balance backed by exchange capital. This is the strictest cold storage requirement of any major jurisdiction globally.

Is crypto taxed in Singapore? Singapore has no capital gains tax. Individual investors who buy and hold crypto without it constituting a trade or business pay no tax on gains. Frequent traders whose activity constitutes a business may have profits taxed as business income.

What changed with Singapore's FSMA Part 9 regime in 2025? From June 30, 2025, all Singapore-incorporated digital token service providers serving only overseas clients must obtain a Part 9 licence under the Financial Services and Markets Act or cease operations. This closed a gap that previously allowed Singapore-incorporated firms to serve only international clients without MAS oversight.

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This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.