If you want to buy and trade crypto in Singapore, picking the right exchange is one of the most important decisions you’ll have to make.
Thankfully, the authorities there have made it a little easier to find one that best suits your needs. That is due, in no small part, to the regulations they have put in place to keep traders safe.
To help you pick a suitable platform, we’ve put together this guide. In it, you’ll discover how crypto regulation works in the country. We’ll also explain how to check if a platform is licensed by the Monetary Authority of Singapore (MAS), and why it is so important to use a compliant exchange.
Hopefully, you will find it a useful resource.
What Are The Crypto Regulations in Singapore?
Singapore has developed a well-deserved reputation for being one of the most progressive crypto hubs in Asia. Thanks to the Monetary Authority of Singapore (MAS) and the Payment Services Act (PSA), the country now has clear and strict rules around digital assets.
For example, under the PSA, any platform that deals with Digital Payment Tokens (DPTs) must hold a Digital Payment Token licence. This licence is important because it ensures the exchange follows guidelines on anti-money laundering, customer verification, and secure handling of funds.
In addition, licensed exchanges also have to prove they’re financially stable and meet crypto exchange compliance requirements. This helps to protect traders from fraud and misuse of funds.
You should also be aware that when you use an MAS-regulated platform, you are actively dealing with a business that’s being regularly monitored by Singapore’s financial watchdog. Therefore, if you’re considering trading Bitcoin, Ethereum, or any other crypto asset, make sure the exchange operates under these rules.
How Do I Know If a Crypto Exchange Is Licensed by MAS in Singapore?
This is one of the most common questions people have before entering the crypto space in Singapore. Thankfully, it’s easy to check if a platform is officially licensed.
The MAS keeps a constantly updated public register of all licensed crypto exchanges. Subsequently, you can simply visit the MAS website and search for the exchange name under the list of approved Digital Payment Token service providers. Should a company be on that list, it’s recognised as a regulated crypto exchange Singapore, like Independent Reserve is.
Talking of Independent Reserve. They were one of the first exchanges in Singapore to receive their full MAS licence. This makes them a trusted platform that allows users to trade securely. When checking an exchange’s licence, here’s what to look for:
- It should clearly state its Digital Payment Token licence number.
- The exchange’s company name should match what’s listed on the MAS website.
- It should follow strict know-your-customer (KYC) and anti-money-laundering (AML) checks.
If a platform avoids mentioning regulation or provides vague licensing details, take that as a red flag and steer well clear of them.
Why Is It Important to Use a Regulated Crypto Exchange in Singapore?
Choosing a MAS-licensed trading platform should give you the peace of mind that your money is protected. It also means you will be trading within a system that is built on trust and accountability.
When you use a regulated exchange, your funds are kept separate from the company’s operational accounts. Consequently, your money isn’t being used for the business’s running costs or investments. In addition, these platforms also follow cybersecurity standards and must complete independent audits to prove they are being compliant with the rules the authorities put in place.
For traders, that means they get to enjoy an experience that is safe, transparent, and on a platform with clear accountability. As MAS-approved exchanges report to regulators, maintain proper records, and follow financial best practices, using a regulated exchange is the most reliable way to build wealth.
What Are the Best Licensed Crypto Exchanges in Singapore?
If you’re ready to start trading, you have a few solid options available in Singapore. Here are three MAS-licensed trading platforms that are definitely worth checking out:
1. Independent Reserve
As mentioned, Independent Reserve were one of the first exchanges to gain full MAS approval. The platform was launched in 2013 and offers low fees, advanced security features, and supports a wide range of digital currencies.
2. Coinhako
Coinhako is a local favourite in Singapore. It’s a beginner-friendly exchange that holds a Digital Payment Token licence. Additionally, it supports multiple payment methods, including direct bank transfers in SGD.
3. Kraken
Kraken are a global exchange that operates under the MAS regulatory framework. It tends to appeal to more experienced traders who want to access advanced charting tools and a large selection of coins.
All of these platforms are good examples of safe crypto exchanges in Singapore that follow strict regulatory oversight. Choosing one of them will ensure you enjoy a smooth trading experience and avoid unnecessary risks.
The Risks of Using Unregulated Exchanges
You might be tempted to trade on an unlicensed platform, especially if they offer lower fees or more coin options. But that’s where the danger lies.
Unregulated exchanges can disappear overnight. Moreover, there’s no legal protection for you if your funds vanish or if the company is hacked. In fact, some platforms have even been linked to money-laundering operations, which means if you use them, you are at risk of investigation or financial loss.
Without MAS oversight, these exchanges aren’t required to follow Singapore crypto investor protection rules. This means there is a very real possibility that your assets could be mixed in with their operational funds, and your ability to make withdrawals may be frozen without warning.
As a general rule of thumb, it’s better to be safe than sorry. Therefore, trading on a platform where you will incur slightly higher fees is much more advisable than risking losing everything to an unregulated site.
