Digital asset using cryptography and a distributed ledger (blockchain). Examples: Bitcoin, Ethereum. MAS regulates digital payment token services in Singapore.
Cryptocurrency is a digital asset secured by cryptography that operates on a decentralized network — typically a blockchain — without a central issuing authority like a government or bank.
Bitcoin, launched in 2009, is the original and largest cryptocurrency. Ethereum, Solana, and thousands of others have followed. The total cryptocurrency market cap fluctuates between US$1 – 3 trillion.
MAS (Monetary Authority of Singapore) regulates cryptocurrency under the Payment Services Act. Digital Payment Token (DPT) service providers must be licensed.
Licensed exchanges in Singapore include Coinhako, Independent Reserve, Crypto.com, and others holding Major Payment Institution licences.
Retail crypto access is restricted: MAS has banned crypto advertising to the general public since 2022 and prohibits 'frictionless' purchase flows. You can buy crypto, but providers can't market it widely.
Bitcoin annualised volatility: 60% – 100% historically. Compare to S&P 500's 15% – 18%.
Drawdowns: Bitcoin has experienced multiple 70% – 85% drawdowns since 2010. Each was followed by a new high — but the path between is brutal.
Smaller cryptocurrencies: substantially more volatile and more prone to going to zero. ~95% of cryptocurrencies launched in 2017 – 2018 have lost most or all of their value.
Exchange risk: collapses (FTX, Celsius, Voyager) have cost investors billions. Use only MAS-licensed exchanges, withdraw to your own wallet for long-term holdings.
Capital gains: Singapore doesn't tax capital gains for individuals — so casual crypto traders' profits are tax-free.
Income tax: if crypto trading is your trade or business (frequent, systematic, profit-seeking), IRAS may treat profits as trade income, taxable at your marginal rate. Borderline cases get scrutiny.
GST: from 2020, crypto-to-crypto and crypto-to-fiat transactions are GST-exempt. Earlier supplies were GST-able.
Reporting: maintain records of all crypto transactions for at least 5 years for IRAS verification. Use exchange transaction history or specialised crypto tax software.
Yes — MAS regulates digital payment tokens under the Payment Services Act. Licensed exchanges include Coinhako, Independent Reserve, and Crypto.com. MAS has banned retail crypto advertising since 2022 and prohibits 'frictionless' purchase flows, but holding and trading is legal.
Capital gains are tax-free for individuals (no capital gains tax). However, if crypto trading is your business or trade (frequent, systematic, profit-seeking), IRAS may treat profits as trade income, taxable at your marginal rate. Casual investors are usually fine.
If at all, treat as a small 'satellite' allocation (typically 1% – 5% of portfolio), not a core holding. Volatility is 60% – 100% annualised — far above equities. Drawdowns of 70% – 85% have happened multiple times. Use licensed exchanges; consider self-custody for long-term holdings.
Bitcoin (most established, largest market cap, longest track record) and Ethereum (second largest, with broader use cases) are considered the 'safer' end of the spectrum. Smaller altcoins have substantially higher risk; ~95% of cryptos launched in 2017 – 2018 have lost most of their value.