Long or Short: The Singapore Crypto Scene | 2024 Edition
Singapore's crypto scene is getting hotter by the year. Are you worried about the laws, and exchanges here? Please don't worry; this article has all the answers.
Singapore has established a comprehensive regulatory framework to govern the cryptocurrency industry, ensuring legal compliance and mitigating risks.
The Monetary Authority of Singapore (MAS) is the central regulatory authority overseeing and supervising the cryptocurrency market.
Quick Overview of the Regulations for the Crypto Scene in Singapore
In Singapore, cryptocurrencies are not classified as legal tender but are regarded as tokenized assets.
This implies that these are not regularly taken as a mode of exchange for goods and services. However, cryptocurrency exchanges or digital payment token service providers are regulated under the Payment Services Act (PSA) to guarantee transparency and security in monetary transactions.
To reduce money laundering or prevent the funding of terrorism, digital payment token service providers must comply with strict anti-money laundering (AML) regulations.
These must apply and enforce robust know-your-customer (KYC) procedures, carry out extensive customer due diligence (CDD), and swiftly alert authorities to suspicious activities. These regulations conform to international standards the Financial Action Task Force (FATF) sets.
To guarantee compliance with AML regulations, the MAS published Notice PSN02, which describes the basic requirements or obligations for digital payment token service providers. This notice documents clear rules on risk assessment, CDD procedures, regular monitoring, and record-keeping.
Additionally, it emphasizes the importance of vigorous internal review, instructional workshops, and the relevant governance protocols for cryptocurrency service providers. Before starting any cryptocurrency-related projects in Singapore, it is important to consult a Singaporean law firm for legal counsel about the regulatory framework regulating such activities under Singaporean legal jurisdiction.
To conclude, Singapore has set up a regulatory framework that encourages the proper or safe use of cryptocurrencies while upholding the integrity of the monetary system. The definitive regulatory framework or stringent AML measures ensure consumer protection or inspire faith in the cryptocurrency industry.
Blockchain and Cryptocurrency Laws in Singapore
Singapore has established a rigorous regulatory framework to regulate the blockchain and cryptocurrency industry, enabling legal compliance and consumer protection. The Monetary Authority of Singapore (MAS) plays a central role in monitoring and reviewing this continuously changing sector.
Singapore's regulatory framework for blockchain and cryptocurrency laws is based on the Payment Services Act (PSA) and the Securities and Futures Act (SFA). The PSA classifies digital currencies as digital payment tokens (DPTs), which include major cryptocurrencies like Bitcoin and Ethereum. Entities providing DPT-related services, such as digital payment token exchanges and custodian wallet providers, must obtain a license from the MAS.
The licensing rules are set up to protect consumers' interests and lower risks linked to digital payment token activities. Individuals offering these services must procure a payment license, designed for issuing accounts, e-money issuance, cross-border money transfers, domestic money transfers, merchant acquisition, digital payment token provision, or money exchange. Also, if someone provides a payment service involving cryptocurrency coming under the definition of e-money or digital payment tokens, they need to obtain a license.
E-money refers to electronically stored money utilized for payments with a designated account that gets accepted by parties apart from the issuer and denotes a claim on the issuer. Still, deposits accepted in Singapore from Singapore residents are not considered e-money.
Also, the SFA outlines laws for digital securities and securities offerings transacted through blockchain technology. This will enable issuers to comply with the relevant legal and regulatory obligations when launching security tokens or transacting initial coin offerings (ICOs).
By setting up this regulatory framework, Singapore seeks to nurture a safe and vibrant blockchain and cryptocurrency ecosystem. It offers clarity for businesses in the industry, improves consumer protection, and spurs innovation in this continuously changing environment.
Top 4 Reasons To Start Your Crypto Products in Singapore
Singapore has now emerged as a premier global hub for cryptocurrency or blockchain innovation, drawing many companies and entrepreneurs to set up their crypto products in the country. With its robust regulatory framework, supportive government initiatives, and futuristic infrastructure, Singapore provides many compelling reasons for businesses to select it as a founding venue for their crypto ventures.
#1: Best Place for Networking with Other Projects
Singapore is a premier hub for the crypto industry, bolstered by a robust regulatory framework under the guidance of the Monetary Authority of Singapore (MAS). The city-state offers a dynamic crypto community and a vibrant ecosystem conducive to collaboration and innovation.
Investors and businesses in Singapore benefit from a range of secure and regulated exchange platforms such as Crypto.com, Coinbase, Bitfinex, and Huobi Global, offering a diverse selection of cryptocurrencies and fiat currencies. This variety ensures that Singapore remains a nexus for crypto trading and investment, fostering seamless collaborations and partnerships within the industry.
The government's forward-thinking initiatives, from tax incentives to technology infrastructure, further enhance Singapore's appeal. The intention to abolish the 7% tax on digital currency transactions by 2023 exemplifies the city-state's commitment to nurturing the crypto sector.
Prominent crypto companies and exchanges have chosen Singapore as their headquarters, leveraging the city's strategic position in finance and technology to drive growth and innovation in the blockchain domain.
#2: Welcoming for Crypto Projects
Singapore's regulatory clarity, particularly the Payment Services Act of 2019, provides a secure landscape for crypto projects, ensuring investor protection and market integrity.
This supportive legal framework is complemented by government-led initiatives, like blockchain pilot projects and the provision of an exemption period for digital payment token services, which facilitate a smooth transition for businesses adapting to regulatory changes.
Venture capital access and government efforts to stimulate investment contribute to a fertile ground for startups.
The proactive fostering of venture capital funds and the attraction of foreign investments underpin the city’s economic development and its draw for international ventures.
#3: Pools of Web3 Developer Talents
Singapore is recognized as a melting pot of Web3 developer talent, thanks to initiatives like the Smart Nation Initiative and the AzSEAN-Australia Digital Trade Frameworks Initiative. These efforts cultivate a local and international pool of tech innovators, with artificial intelligence and digital innovation at the forefront.
Incubators and accelerators in Singapore provide mentorship and resources, drawing in a diverse array of Web3 talents. The city's calendar of tech events facilitates networking and collaboration, further solidifying its status as a talent hub.
#4: Clear Regulatory Environment
The city's clear regulatory environment, shaped by entities like the Cryptocurrency and Blockchain Industry Association (CBIA), and its ultra-modern banking and financial infrastructure provide crypto companies with the necessary tools to succeed.
The government's collaboration with private blockchain firms showcases a commitment to leveraging blockchain for economic progress.
Top 7 Regulated Crypto Exchanges in Singapore
Now that you are in Singapore, where do you exchange your cryptocurrencies for Singapore's local currency?
Check out these 7 regulated crypto exchanges that you can use safely while you are here!
Gemini, established in 2014 by the Winklevoss twins, operates with a focus on security, compliance, and user experience. Despite a smaller cryptocurrency selection, its commitment to consumer trust via stringent security measures, including hot wallet insurance and a comprehensive KYC process, sets it apart as a preferred platform for traders.
With its user-friendly interface, industry-domineering security measures, comprehensive support center, availability in all 50 U.S. states, and hot wallet insurance supported by digital asset insurance against breaches or hacks, Gemini caters to beginners and experienced traders.
Although it offers less cryptocurrencies compared to other exchanges in the market today, Gemini's focus on gaining consumer trust with strong security measures renders it an ideal option for all traders.
While Gemini may not have as many cryptocurrencies as other exchanges, it offers access to about 100 assets. Users may undertake buying, selling, and trading popular options like Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Gemini Dollar (GUSD), Cardano (ADA), USD Coin (USDC), and Uniswap (UNI).
Gemini holds security features like two-factor authentication, wallet address whitelisting, or device approval. Users must undertake the Know Your Client (KYC) process by uploading a government-issued ID to get access to trading features. This insurance helps protect user funds in the event of a cybersecurity breach or hacking case scenario.
Website URL: https://www.gemini.com/
Trust Score by Coingecko: 10
Average Trading Volume: $30,753,279
Zipmex is a regulated crypto exchange operating in Singapore, offering a secure and accessible platform for cryptocurrency trading. As a regulated exchange, Zipmex adheres to the regulatory framework established by the Monetary Authority of Singapore (MAS), ensuring compliance with the necessary licensing requirements.
One of the key features of Zipmex is its emphasis on security. The platform utilizes industry-leading security measures, including cold storage wallets, multi-factor authentication, and encrypted communication protocols, to safeguard user funds and personal information. This commitment to security provides users with peace of mind while engaging in cryptocurrency trading.
In addition to security, Zipmex offers a user-friendly interface, making it easy for both beginners and experienced traders to navigate the platform. Users have access to a wide range of popular cryptocurrencies and can execute trades quickly and efficiently. The platform also provides competitive pricing, ensuring users receive the best possible rates for their trades.
With its compliance with regulatory requirements and emphasis on security and user experience, Zipmex has become a trusted and popular choice for traders looking to participate in the cryptocurrency market in Singapore.
Trust Score by Coingecko: 7
Average Trading Volume: $41,416.20
Kraken is a renowned regulated crypto exchange in Singapore, offering a range of features and benefits to users. One of the standout advantages of using Kraken is its competitive transaction fees. With a rate of just 0.26%, users can enjoy cost-effective trading and maximize their investment potential.
In addition to its attractive fees, Kraken is known for its user-friendly interface, making it accessible for both beginners and experienced traders. The platform offers a seamless trading experience, allowing users to execute trades quickly and efficiently.
Kraken also provides various account options to cater to different user preferences. From individual accounts to corporate accounts, Kraken offers flexibility and convenience.
Moreover, as a regulated crypto exchange in Singapore, Kraken ensures compliance with regulatory requirements, providing users with a secure and reliable trading environment.
Overall, Kraken's user-friendly interface, competitive transaction fees, and regulatory compliance make it a compelling choice for individuals looking to engage in cryptocurrency trading in Singapore.
Trust Score by Coingecko: 10
Average Trading Volume: ₿15,424.16
Crypto.com is a leading cryptocurrency platform that offers a wide range of services and features for both beginners and experienced traders. One of their standout offerings is their crypto wallet, which provides users with a secure and convenient way to store and manage their digital assets.
With Crypto.com, users have access to a wide variety of cryptocurrencies, including popular ones like Bitcoin, Ethereum, and Litecoin, as well as a multitude of other altcoins. This gives traders the opportunity to diversify their portfolios and explore different investment options.
The platform also boasts a user-friendly interface, making it easy for users to navigate and execute trades seamlessly. Whether you're a novice or an expert, Crypto.com provides a smooth user experience, ensuring that you can trade with ease and efficiency.
When it comes to security, Crypto.com is committed to implementing market best practices. They prioritize the safeguarding of their users' funds and employ multi-layered security measures, such as two-factor authentication and cold storage, to protect against potential threats.
In summary, with Crypto.com's crypto wallet, access to a wide variety of cryptocurrencies, user-friendly interface, and market best security practices, users can enjoy a secure and hassle-free trading experience on the platform.
Trust Score by Coingecko: 9
Average Trading Volume: ₿10,201.2
Coinhako has established itself as a trusted digital asset platform since its inception in 2014. It offers a range of key features and services that make it an ideal platform for buying Bitcoin in Singapore.
One of Coinhako's standout features is its commitment to security. The platform employs high-level security protocols to ensure the safety of users' funds. This includes two-factor authentication, cold storage, and regular security audits, providing users with peace of mind when trading.
Coinhako also offers a user-friendly interface, making it easy for both novice and experienced traders to navigate the platform. Users can easily buy, sell, and store digital assets, including Bitcoin, on the platform.
To get started on Coinhako, new users can follow a simple step-by-step process. Firstly, they need to sign up for an account and complete the necessary verification procedures. Once their account is approved, users can deposit funds into their Coinhako wallet. They can then navigate to the buy section, select Bitcoin, and specify the amount they want to purchase. Finally, they can review the transaction details and confirm the purchase, with the Bitcoin being credited to their Coinhako wallet.
In summary, Coinhako is a reputable digital asset platform that offers secure and user-friendly services for buying Bitcoin in Singapore. Its commitment to security and ease of use makes it an attractive choice for both new and experienced traders.
Coinbase, a leading regulated crypto exchange in Singapore, offers a wide range of features and services that have contributed to its strong reputation among users. As a regulated platform, Coinbase adheres to strict compliance standards, providing a secure and trustworthy environment for users to buy, sell, and store their digital assets.
One of the standout features of Coinbase is its user-friendly interface, designed to cater to both novice and experienced traders. The platform allows users to easily navigate through various sections, making it convenient to buy, sell, and trade popular cryptocurrencies such as Bitcoin, Ethereum, and more.
In addition to its user-friendly interface, Coinbase offers seamless integration with traditional financial services. It allows users to link their bank accounts or use credit or debit cards for easy funding and withdrawals. This feature further simplifies the process of buying and selling digital assets.
Coinbase has earned a stellar reputation in the crypto industry for its commitment to regulatory compliance. As a regulated crypto exchange, it operates within the legal framework set by the authorities, ensuring the safety of users' funds and compliance with regulatory requirements. This regulatory compliance has attracted a large user base, including individual investors, institutional investors, and traders.
In summary, Coinbase stands out as a regulated crypto exchange in Singapore, offering a user-friendly interface, integration with traditional financial services, and adherence to regulatory standards. Its reputation, large user base, and commitment to compliance make it a trusted platform for crypto trading and investment.
Trust Score by Coingecko: 10
Average Trading Volume: $1,405,315,085
LUNO is a leading regulated crypto exchange and wallet provider based in Singapore. As a trusted platform,
LUNO enables users to easily buy, sell, and store a wide range of cryptocurrencies.
One of the standout features of LUNO is its user-friendly interface, making it accessible for both beginners and experienced traders. The platform's intuitive design allows users to navigate effortlessly through various sections, ensuring a seamless trading experience.
In addition to its user-friendly interface, LUNO offers competitive fees, attracting both individual investors and institutional traders. With transparent pricing, users can enjoy cost-effective transactions without compromising on the quality of service.
When it comes to security, LUNO prioritizes the safety of its users' funds. Through secure storage options, including offline wallets and advanced encryption techniques, LUNO ensures that digital assets are protected from potential threats.
As a regulated crypto exchange and wallet provider, LUNO operates within the legal framework set by the Singapore authorities. This regulatory compliance provides users with confidence in the platform's security and compliance with industry standards.
Whether you are a novice or an experienced trader, LUNO offers a reliable and convenient platform to buy, sell, and store cryptocurrencies, making it a preferred choice within the cryptocurrency community.
Website: https://www.luno.com/ (Get USD12.5 in BTC)
Trust Score by Coingecko: 9
Average Trading Volume: $13,361,916