If you are new to cryptocurrency and want to know how to invest wisely, this guide will walk you through the process step-by-step. In 2024, 26% of Singaporeans reported owning cryptocurrency, which is impressive compared to 21% in the US, 13.6% in South Korea, and 14.3% in Hong Kong. Singapore is a leading example of crypto adoption in the Asia-Pacific region.
Is Bitcoin legal in Singapore?
Although Bitcoin is not legal tender, it is allowed to trade in Singapore. Singapore offers favorable regulations for cryptocurrency ownership and trading. In the 2023 Bybit Fintech versus Ho Kai Xin case, the Singapore High Court declared bitcoin property that can be kept on trust. Even if it’s not legal tender, Bitcoin can be a payment method in Singapore. Legal tender is the money used to pay debts and satisfy financial obligations in a jurisdiction.
The Monetary Authority of Singapore (MAS) regulates cryptocurrencies under the Payment Services Act (PSA) to prevent money laundering and terrorism funding. Bitcoin can be bought, sold, and held in Singapore, but exchanges must get MAS licenses. The cryptocurrency law protects consumers and financial stability while fostering innovation.
Key takeaways
- In 2024, 26% of Singaporeans owned cryptocurrency, making the country a leader in crypto adoption in the Asia-Pacific region.
- Bitcoin is legal in Singapore, classified as property under the law and regulated by the Monetary Authority of Singapore (MAS) through the Payment Services Act.
- Residents can buy Bitcoin via centralized exchanges, non-custodial wallets, decentralized exchanges, P2P platforms and Bitcoin ATMs.
- Using non-custodial or cold wallets ensures better security for Bitcoin holdings than custodial options like exchange wallets.
This article briefly overviews crypto regulations in Singapore and explains the different ways to buy Bitcoin (BTC) in the city-state, including centralized exchanges and Bitcoin ATMs. The favorable regulatory climate and strong digital infrastructure have made Singapore an attractive place for crypto adoption, as shown in the statistics.
How do you prepare to buy Bitcoin in Singapore?
You may want to know how to initiate a Bitcoin transaction, explore different purchasing methods, and secure your digital assets before beginning a crypto transaction. This groundwork reduces risks and maximizes investment potential.
Register yourself on a centralized exchange
Signing up for a cryptocurrency exchange is the first step to exploring digital assets. It usually includes visiting the exchange’s website or installing its app. You must register using your email and secure password. Exchanges in Singapore require identity verification through a KYC process. This normally requires a government-issued ID and address evidence. After exchange officials authenticate your account, you must put funds into your exchange wallet via bank transfers or credit/debit cards. Singapore banks frequently facilitate crypto exchanges.
Set up a non-custodial wallet
Crypto exchange wallets are custodial, meaning they manage your private keys. Less control over your funds may deter you from having big or long-term holdings in your exchange wallet. The solution is a non-custodial wallet. Unlike exchange wallets, non-custodial wallets like Trust Wallet offer full control over funds. You set up wallet login credentials, but the service saves no backup. The negative is that losing or forgetting your credentials means losing your funds.
Get cold wallets to keep your Bitcoin secure
Hardware wallets, known as cold wallets, are large storage devices resembling USB drives. They offer top-notch security by storing Bitcoin offline and only connecting to the internet for transactions. To use a cold wallet, you connect it to your computer like a USB drive and then use the device’s interface to send and receive Bitcoin. Cold wallets offer the best protection against cyberattacks because they are typically disconnected from the internet.
Is tokenized Bitcoin accessible in Singapore?
The fundamental capabilities of Bitcoin are limited despite its increasing popularity. Cryptocurrency users and the expanding Web3 ecosystem rely on decentralized applications and sophisticated smart contracts, which are absent from its blockchain. Tokenized Bitcoin provides an answer by reflecting Bitcoin’s value on different blockchains. These digital assets, similar to stablecoins tied to fiat currencies, make Bitcoin more useful by making it easier to program and more accessible.
The financial sector, regulators, and authorities have joined forces on Project Guardian to simplify asset tokenization. To facilitate tokenized securities, it is necessary to standardize processes, automate activities, and encourage interoperability across blockchains. This will help to close the gap between blockchain technology and conventional finance.
Best practices for buying Bitcoin in Singapore
Best security techniques limit dangers when buying and storing Bitcoin. Choose a reliable centralized exchange, peer-to-peer marketplace, or decentralized exchange that follows local laws. Ensure account security with a secure internet connection and two-factor authentication (2FA). Cost-effective Bitcoin purchases need consideration of transaction costs, market pricing, and payment options.
Move your Bitcoin to a wallet you can control after buying it. A non-custodial wallet lets you control your private keys, while a cold wallet keeps your money offline for maximum security. Keep up with Bitcoin legislation and market trends to invest wisely and secure your digital assets.
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