Top 6 Licensed Crypto Exchanges in Singapore 2025: Security & Regulatory Analysis

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Singapore has long been regarded as one of the most Web3-friendly jurisdictions in the world. As early as 2020, the country introduced comprehensive regulations and a compliance license—the Digital Payment Token (DPT) license—for cryptocurrency exchanges, stablecoin issuers, and blockchain payment consultants. However, despite hundreds of applications submitted over the past few years, only around 17 companies have successfully obtained full approval, highlighting an extremely high rejection rate.

In the wake of major crypto collapses like LUNA, Three Arrows Capital, and FTX, Singapore—which was once seen as a crypto haven—has tightened its regulatory stance. Even Binance chose to exit the Singapore market in 2022. Yet, according to a recent survey, over 40% of Singaporeans still actively invest in and hold digital assets. This regulatory tightening appears aimed at protecting retail investors by ensuring only rigorously vetted platforms can operate locally.

This guide explores Singapore’s evolving crypto regulatory landscape, the licensing requirements for exchanges, how users can verify compliance, and which platforms are officially authorized to serve Singaporean users in 2025.

Understanding Singapore’s Crypto Licensing Framework: SPI vs. MPI

Under Singapore’s regulatory system, the Payment Services Act (PSA)—amended and effective from January 2020—governs all payment-related activities. This includes traditional services like money transfers and currency exchange, as well as emerging digital services such as e-money issuance and Digital Payment Token (DPT) services.

Cryptocurrencies like Bitcoin and Ethereum are explicitly classified under DPTs. Any platform offering crypto trading, fiat on-ramps, custody, or wallet management must obtain a DPT license.

The type of license depends on transaction volume:

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In practice, any exchange claiming to operate legally in Singapore must hold either an SPI or MPI license covering DPT services. Operating without one constitutes illegal activity.

How to Verify a Crypto Exchange’s License in Singapore

The Monetary Authority of Singapore (MAS) is responsible for overseeing virtual asset regulations. It functions as both the central bank and financial regulator.

You can verify whether an exchange holds a valid DPT license via the official MAS Financial Institutions Directory:
https://eservices.mas.gov.sg/fid/institution

To search:

  1. Navigate to Payment > Major/Standard Payment Institution > Digital Payment Token Service
  2. Enter the exchange’s local registered company name

As of October 2023, only 17 entities held DPT licenses—covering exchanges, blockchain advisors, and infrastructure providers.

Can You Check Which Exchanges Are Applying for a License?

No. Singapore does not publish a public list of pending applications. Only approved licenses appear on the MAS website. There is no way for the public to track ongoing application statuses.

Licensed Crypto Exchanges in Singapore: Only Six Active Platforms

Among the 17 DPT-licensed entities, just six are operational cryptocurrency exchanges available to Singapore users:

Additionally, stablecoin issuers Circle and Paxos also hold DPT licenses but do not function as trading platforms.

These six exchanges represent the only fully compliant options for buying, selling, and trading crypto in Singapore under current regulation.

Are Unlicensed Exchanges Illegal in Singapore?

Exchanges operating without a DPT license are not automatically deemed illegal if they are actively applying—but the grace period for legacy operators ended on July 28, 2020. Before that date, existing platforms could continue operations temporarily while applying. That exemption no longer exists.

Due to strict application criteria—including financial audits, anti-money laundering (AML) checks, minimum capital requirements (SGD 100,000), and local office presence—many platforms have either withdrawn or operate in a gray area.

Singapore’s Strict AML Measures: KYC + KYT Compliance

To align with FATF (Financial Action Task Force) standards, Singapore mandates more than just standard Know Your Customer (KYC) procedures.

Licensed exchanges must also implement Know Your Transaction (KYT) protocols—tracking the origin of every incoming token to detect illicit funds linked to thefts or money laundering.

If suspicious activity is detected, exchanges may freeze deposits, request additional documentation, or report directly to authorities—significantly reducing risks of users receiving "tainted" assets.

Risks of Using Unlicensed Exchanges in Singapore

Obtaining a DPT license involves rigorous scrutiny. With fewer than 2.5% of applicants succeeding, licensed status signals strong financial health and regulatory commitment.

MAS requires licensed operators to:

While using unlicensed platforms isn’t criminal for individuals, it exposes users to significant risks—including fund misappropriation or sudden platform shutdowns—due to lack of oversight.

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Beyond Licensing: How to Evaluate Exchange Safety

A DPT license ensures regulatory compliance—but doesn't guarantee operational safety. Users should conduct further due diligence using key indicators:

  1. Exchange Reputation & Track Record
  2. Proof of Reserves (POR)
  3. User Protection Funds
  4. Multi-jurisdictional Compliance
  5. Account Security Features (e.g., 2FA, withdrawal whitelisting)

For example, among licensed Singapore exchanges:

Transparency beyond legal requirements remains limited across most platforms.

Frequently Asked Questions (FAQ)

Q: How many crypto exchanges are legally licensed in Singapore?
A: As of 2025, only six exchanges hold active DPT licenses: Coinbase, Crypto.com, Independent Reserve, Blockchain.com, Sparrow, and Coinhako.

Q: Is Binance legal in Singapore?
A: No. Binance exited the Singapore market in 2022 and does not hold a DPT license. It operates offshore and is not authorized to serve Singaporean users.

Q: Does having a DPT license mean an exchange is 100% safe?
A: Not necessarily. The license confirms regulatory compliance but doesn’t eliminate business or technical risks. Always assess transparency and security practices independently.

Q: Can I use international exchanges in Singapore?
A: Yes—but only if they don’t target Singapore users or facilitate SGD transactions. Using unlicensed platforms carries higher risk due to lack of local oversight.

Q: What happens if a licensed exchange fails?
A: Customer assets held in trust are theoretically protected. However, there is no government-backed insurance scheme like the FDIC for banks.

Q: How often are licensed exchanges audited?
A: At minimum, annually. Some platforms like Independent Reserve go further with yearly third-party verifications of both fiat and crypto balances.

Final Thoughts: Safety First in Singapore’s Regulated Crypto Market

Singapore’s stringent licensing regime reflects its focus on investor protection over rapid industry growth. With only six compliant exchanges serving millions of crypto users, competition remains limited—but security standards are high.

When choosing a platform, always verify its MAS registration status and look beyond licensing to transparency metrics like Proof of Reserves and audit history.

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For Singaporeans navigating this tightly controlled ecosystem, prioritizing licensed, transparent, and well-audited exchanges is essential for long-term confidence and asset security.

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