4 min read

Crypto Exchanges& Regulation in Singapore

Top exchanges in Singapore by Coincub criteria
Article review author
Jonathan Lea
Singapore head image

Crypto Country Rating: 8.4/10

9/10
Institutional acceptance
Very positive. Low tax on crypto
9/10
Exchanges & Wallets availability
All leading names with high presence and access plus wide choice of home-based exchanges
9/10
Government regulation
Clear guidance and regulation
6/10
Defi acceptance
Government looking to adopt some of its advantages
8/10
Financial services
Leading financial hub with progressive strategies
9/10
Transparency
High requirement for disclosure for crypto firms and individuals
9/10
Spending crypto
Well-established outlets and services
8/10
Banks activity in crypto
Leading banks actively looking to trial and promote services in virtual assets

Bitcoin and cryptocurrency trading in Singapore

In keeping with maintaining its competitive position, Singapore offers firm but clear legislative guidance with a low tax on crypto earnings combined with a progressive attitude within the financial sector and lots of retail uptake.

Law and crypto trading in Singapore

Legal - existing crypto legislation

Bitcoin and other cryptocurrencies are recognized and accepted by the Singaporean government as legitimate. There is a strict requirement to follow laws and regulations. The country has embraced the concept of crypto and the Monetary Authority of Singapore has, like Sweden, been looking into forming its own e-money. As a major business centre, Singapore is keen to adopt the latest innovations and thinking in this area.

Legal - forthcoming crypto legislation

Singapore is actively assessing all aspects of crypto, such as trading services and blockchain technology.

Taxing cryptocurrencies in Singapore

Income Tax

Tax is a subject never far away from bitcoin and other digital currencies. Put simply, any crypto that you purchase is treated as property, but if you trade it on a regular basis your gains will be subject to tax (17%)  The Inland Revenue Authority of Singapore (IRAS) is responsible for tax collection.

Tax relief

Basically, there is no capital gains tax in Singapore. So, if you’re buying bitcoin or another cryptocurrency and you make a gain in its value, there is no capital gains tax to pay when you sell. If you’re trading regularly – and that’s something you have to sort out – then the gains will be subject to tax.

Tax when moving residency

If you are a long-term resident of Singapore you are probably deemed a permanent resident for tax purposes. If you are not a permanent resident, and your holdings are outside of Singapore you’ll fall under the required tax laws of your adopted country.

Tax on mining

Mining is a hugely expensive exercise in time and money and way beyond the scope of most individuals. In Singapore, mining is not illegal but the costs of doing it might outweigh your potential gains. You’ll also have to pay income tax on your hard-earned mined coins at 17%.

Crypto financial services in Singapore

Fin services - retirement planning

Most retirement and pension funds worldwide deem cryptocurrencies to be too volatile to become part of long-term retirement schemes. There is little certainty on this at present.

Fin services - banking

Singapore is highly advanced as a financial trading center, and crypto and digital currencies are widely understood right from the top down including the possible adoption of an e-currency.

Fin Services - DeFi

Decentralized Finance is behind the rapid interest and growth of cryptocurrency and is underpinned by blockchain technology. The central bank, the Monetary Authority of Singapore, is looking at new financial sector regulations including stronger standards for cryptocurrency service providers and higher requirements for technology risk management in financial institutions.

Using crypto in Singapore

Article step image 1
Spend

Singapore is a very progressive country in its acceptance of crypto and there is a growing number of bitcoin ATMs across the country. You can spend popular cryptocurrencies like bitcoin and ether in a number of outlets and retailers, as well as on gift cards.

Article step image 1
Gifting crypto

The gains on your bitcoin will be subject to tax prior to gifting.

Crypto regulation in Singapore

Security

Singapore is one of the leading players in regulating crypto and exchanges are firmly licensed and regulated by the country’s central bank, the Monetary Authority of Singapore. The combination of low tax on crypto and firm regulation makes Singapore an attractive place, but you’ll always need to check out what exchange suits your needs best and the levels of service, insurance, and protection they can offer individuals.

Transparency

You have plenty of choices for choosing exchanges, both overseas and home-based ones. In all cases, you’ll have to verify your email address and identity. Local exchanges all have to comply with central bank guidelines and reporting obligations.  You’ll possibly enjoy better customer support and protection with a locally based exchange whereas an established worldwide exchange may offer an increased range of features and services.

Helpful?
FAQ

New to crypto? Here’s our guide!

FAQ Image #1 01 Why Bitcoin? It seems like the buzz around Bitcoin just keeps growing. Bitcoin is a constantly evolving technology with a passionate community. What is it about the digital asset that makes it such a controversial topic and attractive investment?
FAQ Image #2 02 How to Get Started with Bitcoin It can be difficult to get past the technical jargon surrounding bitcoin (BTC) and other cryptocurrencies in order to figure out how you can buy and store them. Beginners can purchase Bitcoin, for example, on many exchanges using fiat currency like U.S. Dollar, Euro or British Pound.
FAQ Image #3 03 Blockchains 101 Blockchains are a type of database where data is stored in blocks that are chained together. As new data comes in, it is entered into a block, which is then chained to the previous block. The Bitcoin blockchain serves as a ledger that records every Bitcoin transaction in history.
FAQ Image #4 04 Bitcoin in the Real World Ok - you’ve found an exchange, bought your Bitcoin, and stored it safely. What’s next? By now you can buy just about anything with Bitcoin if you try hard enough, from Amazon gift cards to an old master painting. You can also convert your BTC to fiat with ATMs, an exchange, and more.

What people say about us

Aayush Bhatnagar JIO - Senior Vice President

Coincub is a novel crypto exchange aggregator that helps investors to compare different exchanges before taking their decision.

James Gillingham Co-Founder and CEO at FINXFLO

The most comprehensive analysis I found. Have a look, you might be surprised.

Jonathan Knegtel CEO Blockdata

Coincub looks dope! Nice one!