Is Cryptocurrency Legal In Singapore? (Oct 2022)

September 12, 2022
Blog

Bitcoin and other altcoins (such as Ethereum, Dogecoin, and Sushiswap) are perfectly legal to buy, sell, own, mine, and trade in Singapore. Cryptocurrencies are a great way to add diversity to your portfolio, but be aware that any earnings you make from buying and selling cryptocurrencies will need to be reported to the Monetary Authority of Singapore (MAS) to be taxed, so keeping records of all your transactions is most definitely recommended.

There are many different methods that you can use to get your hands on Bitcoin and other cryptos, but in particular, I recommend using cryptocurrency exchanges like Crypto.com. Given its huge array of supported coins, its robust safety, and the fact that it offers among the lowest trading fees across most crypto platforms in Singapore, I think it's one of the best alternatives for people wanting to invest in crypto and I can't recommend the platform enough.

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Is Cryptocurrency Legal In Singapore?

Yes, all cryptocurrencies (including Bitcoin, Ethereum, and Dogecoin) are legal in Singapore. The Singaporean Government recognizes both the economic and social potential of crypto, but it also exercises an understandable amount of caution regarding crypto, which is shown by the regulations applied to crypto in Singapore (including anti-money laundering and terrorism counter-financing laws).

Holding digital assets like Bitcoin and Ethereum in crypto wallets (both cold and hot), as well as being a crypto trader in Singapore are also both legal crypto activities. It doesn't matter if you got your Bitcoin from virtual asset service providers like Crypto.com and Binance, or if you bought them directly from your software wallet, it's perfectly legal to own them.

The Singaporean government also allows the use of crypto in general, which means that you can transfer cryptocurrencies without any issues, as well as use them in transactions involving both Internet-based and brick-and-mortar businesses (if they choose to accept digital currencies).

Are Cryptocurrencies Legal Tender In Singapore?

No. The Singaporean Government does not consider crypto as legal tender, which means that the number of transactions that can be completed using crypto is quite limited.

This is mainly because crypto is not regulated or controlled by any central authority in Singapore, which means that retailers are not obligated to accept crypto as a form of payment (despite this, however, some retailers do accept crypto as payment, so it's always worth asking them first).

Because crypto is not a legal tender in Singapore, you also can't use it to pay taxes or other government-related transactions.

Is Cryptocurrency Mining Legal In Singapore?

Yes. Considering that buying, selling, owning, and trading cryptocurrency is legal in Singapore, cryptocurrency mining is also legal across the entirety of the country's territory as well. There aren't any explicit laws prohibiting crypto mining as an activity in Singapore, and as long as you follow general electricity regulations, you should be in no legal trouble.

However, be aware that the profits that you make are also subject to income tax in Singapore. Building a crypto mining rig can also be pretty costly.

Do I Have To Pay Crypto Taxes In Singapore?

Yes and no. The Singaporean Government taxes crypto depending on the kind of activity being conducted: in case the crypto trading is carried out in the ordinary course of business, then the Singaporean Government treats it like any other investment, which means that the profit you make from it would be subject to income tax. In this case, any losses and gains you incur must be recorded on an annual tax return so that they can be reported to the Monetary Authority of Singapore (MAS). However, if the crypto is bought for long-term investment purposes, then capital gains made from them would not be subject to taxation because Singapore does not impose taxes on capital gains.

If cryptocurrencies are used to pay for goods and services, then the business providing the goods or services will be taxed based on the value of the goods or services being provided. Since cryptocurrencies are not the same as fiat currencies (and therefore not legal tender), they are treated as intangible property for the purposes of income tax, which means that transactions using crypto as payment are considered barter trade (trade of goods and services between two parties that doesn't use money) by the Singaporean Government.

Is Crypto Staking Legal In Singapore?

Yes, crypto staking is legal in Singapore, mainly because buying, selling, trading, and owning crypto is legal in Singapore as well. However, be aware that any profits that you make from crypto staking will need to be reported to the Monetary Authority of Singapore (MAS), as the profits made from staking fall under the definition of income tax.

How To Buy Crypto In Singapore

To buy Bitcoin and other altcoins in Singapore, you have plenty of options: you can use a cryptocurrency broker to buy and sell crypto in as little as a single click, buy crypto through the use of one of many Bitcoin ATMs spread across the Singaporean territory, or even buy it through your software wallet of choice.

However, none of these methods compare to the ease of use and effectiveness of a cryptocurrency exchange. These platforms allow you to buy and sell digital currency (including Bitcoin) by exchanging fiat currencies for them (including SGD and USD). In addition, some exchanges allow you to trade other altcoins for Bitcoin directly, and some even offer access to other investment vehicles (like leveraged foreign exchange trading) and not just crypto, which makes crypto exchanges all the more convenient.

There are several platforms to choose from when it comes to crypto exchanges in Singapore, but in particular, I recommend using Crypto.com. Considering its robust safety, the fact that it offers among the lowest trading fees across most crypto platforms in Singapore, and just how many crypto tokens it supports, I believe it to be one of the best alternatives for people wanting to invest in crypto in Singapore.

In Summary

Bitcoin and other altcoins (such as Ethereum, Dogecoin, and Sushiswap) are perfectly legal to buy, sell, own, mine, and trade in Singapore. Cryptocurrencies are a great way to add diversity to your portfolio, but be aware that any earnings you make from buying and selling cryptocurrencies will need to be reported to the Monetary Authority of Singapore (MAS) to be taxed, so keeping records of all your transactions is most definitely recommended.

There are many different methods that you can use to get your hands on Bitcoin and other cryptos, but in particular, I recommend using cryptocurrency exchanges like Crypto.com. Given its huge array of supported coins, its robust safety, and the fact that it offers among the lowest trading fees across most crypto platforms in Singapore, I think it's one of the best alternatives for people wanting to invest in crypto and I can't recommend the platform enough.

OPEN FREE ACCOUNT
Extremely secure, 10x leverage

Is Cryptocurrency Legal In Singapore FAQs

Are There Any Border Restrictions For Crypto In Singapore?

Currently, there are no border restrictions on cryptocurrencies in Singapore. There are also no declarations required in this regard.

Is Bitcoin Legal In Singapore?

Yes, Bitcoin is legal in Singapore. Bitcoin and any other altcoins (like Ethereum and Cardano) are legally available for purchase, sale, and trade. You can also own the cryptocurrency and store it in a crypto wallet, whether it's a software (hot) or hardware (cold) wallet.

Are There AML Crypto Regulations In Singapore?

Yes, there are crypto-related anti-money laundering (AML) regulations in Singapore. These are outlined in Notice PSN02 issued by the Monetary Authority of Singapore (MAS), and further specified in the MAS' Guidelines to Notice PSN02 statement. Notice PSN02 provides an anti-money laundering and terrorism counter-financing framework that digital payment token service providers can use to enforce Singaporean law.

What Are Digital Payment Service Providers In Singapore?

A digital payment token (DPT) service provider is any service that deals with (or facilitates) digital payment token exchanges. DPT service providers include payment institutions, banks, and other financial institutions, as well as any applicants under the Payment Services Act (PS Act). As for the definition of digital payment token services, these include the buying or selling of digital payment tokens (DPTs) or facilitating the exchange of DPTs. 

Who Regulates Crypto In Singapore?

The entity in charge of regulating crypto in Singapore is known as the Monetary Authority of Singapore (MAS). It issued a regulation implementing the crypto travel rule in Singapore (known as Notice PSN02 and Guidelines to Notice PSN02), and it's also responsible for paying close attention to the compliance of crypto travel rule requirements.

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