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Singapore has a sizable crypto-interested population, which has helped the country’s crypto industry grow over time. And most recently, Southeast Asia’s top cryptocurrency hub has been Singapore. However, the Singaporean government has expressed a number of worries regarding the popularity of cryptocurrencies there. Simply put, the Singaporean government supports the development of digital assets but opposes cryptocurrency speculation.
The Monetary Authority of Singapore (MAS), Singapore’s main financial regulator, promotes Singapore as a FinTech hub by working with businesses to explore distributed ledger technology (DLT) and encouraging creativity in use cases for digital assets. Leading cryptocurrency players have been drawn to Singapore by MAS. For those who want to provide services related to cryptography, the MAS is extremely strict and has a drawn-out licensing procedure. In addition to taking increasingly strict measures to restrict access to cryptocurrencies, MAS has also been sternly cautioning individuals against making retail investments in them. Additionally, MAS has been taking increasingly drastic steps to impede access to cryptocurrencies and has been issuing stern warnings against retail investments in cryptocurrencies.
Let’s take a closer look at the rules, purchasing options, and other important information so you can start investing in cryptocurrencies right away.
Top Crypto Exchanges for Singaporean Customers
Is it legal to buy Bitcoin and other Cryptocurrencies in Singapore?
Despite the government of Singapore’s hesitation and suspicion over the country’s ongoing crypto-boom, there are no restrictions on purchasing, selling, trading, or offering other services related to cryptocurrencies. More importantly, it needs to be understood that cryptocurrencies are not accepted as legal tender.
- Each cryptocurrency may be treated as either an unregulated digital token that is only used for utility purposes,
- or as a regulated product like e-money, a digital payment token (“DPT”), or a capital markets product (including securities).
A person who conducts the business of offering a payment service in relation to a cryptocurrency would need to obtain a license under Singapore’s Payment Services Act of 2019 (PSA), as a cryptocurrency may fall under the definition of “e-money” or “digital payment token.” of 2019 (PSA).
The Singaporean government continues to take a pragmatic, realistic, and customized approach to cryptocurrencies. While the government recognizes the economic and social potential of cryptocurrencies and works to create a supportive regulatory environment for their adoption within Singapore’s financial system, it is also acting with extreme caution by attempting to identify the risks associated with them, such as those related to consumer protection, anti-money laundering, and counter-terrorism financing, and then managing these risks in a proportionate manner, including through regulatory oversight.
The Monetary Authority of Singapore (MAS), Singapore’s central bank, has not produced or backed any cryptocurrencies for retail use. However, given that cryptocurrencies have a wide range of attributes, characteristics and features, Singapore tries to find a more reasonable regulation for these. Even though cryptocurrencies have a wide range of qualities, traits, and features, Singapore tries to come up with a more reasonable regulation for them. In order to determine whether and how such activities should be regulated under Singaporean law, a number of regulations have been put in place, including the requirement that before engaging in any crypto-related activities in Singapore, one obtains a legal permit from a Singapore law firm.
Singapore does not forbid the use of cryptocurrencies that share characteristics with goods covered by Singaporean law, but parties engaging in business related to such cryptocurrencies must follow all relevant legal requirements. Subject to compliance with other general laws of Singapore, parties may engage in business activities related to cryptocurrencies that do not display the characteristics of the products that are governed by Singapore law.
The type of activity being conducted determines how much cryptocurrency is taxed in Singapore. The taxability of the money raised through an initial coin offering (ICO) is dependent on the kind of coin that is being issued, according to the Inland Revenue Authority of Singapore’s e-Tax Guide on Income Tax Treatment of Digital Tokens. Generally speaking, the ICO proceeds will be taxed if the coin is a payment token and is treated as trading stock. The ICO proceeds would represent consideration for the service and would be taxable when the services are rendered if the coin is a utility token and the issuer is required to provide a service in the future. If the coin is a security token, the ICO procedures would be regarded as those resulting from the issuance of investment assets and would not be taxable because they are capital in nature.
The MAS has put in a lot of effort to make sure Singapore’s laws are up to date with developments in the global cryptocurrency market and take into account the risks and opportunities these developments may bring.
How to buy Bitcoin & Cryptocurrencies in Singapore
Utilizing a MAS-approved cryptocurrency exchange is the simplest way to purchase cryptocurrency in Singapore. Online marketplaces known as cryptocurrency exchanges offer their users access to cryptocurrencies. Cryptocurrency exchanges are online markets where users can access cryptocurrencies. Only a small number of them are authorized and permitted to operate in Singapore. The second advice is to avoid doing business with crypto service providers you are unfamiliar with. Find a cryptocurrency exchange that has been authorized by the MAS, such as Gemini, Zipmex, Kraken, Crypto.com, or Luno, as your first step.
Follow these easy steps to purchase cryptocurrency after choosing the cryptocurrency exchange you want to start with:
Create an account on the cryptocurrency exchange you want to use as your starting point.
You can connect your bank account, e-wallet, debit card, or cash deposit to your exchange account.
Go to the crypto market, choose a crypto token (such as Bitcoin (BTC)), and click the Buy button. Visit the crypto market, select a cryptocurrency token (like Bitcoin (BTC)), and press the Buy button.
Complete the necessary fields, including the purchase price and method of payment.
Review and confirm your transaction once more.
Which platforms can I buy Crypto with a Debit Card in Singapore?Through cryptocurrency exchanges that accept debit cards as a form of payment, you can purchase Bitcoin with a debit card. As an example, Luno enables its customers to buy cryptocurrencies instantly using their credit or debit cards without making a deposit of money. There is also Tokenize Xchange, which gives all of its users the option to top up their debit and credit cards. This gives cryptocurrency traders and investors a seamless way to buy and sell digital assets with ease and flexibility. Simply adhere to the steps listed below to buy cryptocurrency with a debit card:
Open an account on a cryptocurrency exchange that accepts debit card payments.
Connect your debit card to your cryptocurrency wallet.
Go to the marketplace and select Bitcoin.
Click Buy to proceed with filling out the form; don't forget to choose a debit card as your payment method.
Verify your order.
Best Bitcoin Wallets for Singapore
You have a wide selection of top-notch wallets to choose from, including both online hot wallets and offline cold wallets, if you’re looking for the best cryptocurrency wallet in Singapore.
Ledger Nano X has proven to be a wise investment and is the best hardware wallet for storing cryptocurrency assets. This method can securely store your private keys and other cryptographic assets, but more importantly, it can be done offline. The majority of Ledger wallets support over 1,200 crypto assets, coins, and tokens, and they are all among the safest.
If you want something less expensive, the Coinbase Wallet is a good option. It is compatible with iOS and Android devices and provides a low-cost, simple, easy-to-maintain, and, most importantly, secure way to store your NFTs and cryptocurrencies. The app makes it simple to buy, sell, and take ownership of your own crypto assets.
Other popular options for crypto wallets are Electrum, Exodus, and Trust Wallet.