Singapore has long been regarded as one of the most Web3-friendly jurisdictions, introducing the Digital Payment Token (DPT) regulatory framework as early as 2020 for crypto exchanges, stablecoin issuers, and blockchain payment advisors. However, with a stringent approval rate below 2.5%, only 17 out of 600+ applicants have secured licenses. Post-LUNA, Three Arrows Capital, and FTX collapses, Singapore tightened oversight—prompting even Binance to exit in 2022.
This guide explores Singapore’s regulatory landscape, how to verify exchange licenses, and lists fully compliant platforms for secure trading.
Singapore’s Crypto Licensing Framework: SPI vs. MPI
Under the Payment Services Act (PSA):
- SPI (Standard Payment Institution License): For exchanges with monthly trading volumes < SGD 3 million.
- MPI (Major Payment Institution License): Required for volumes exceeding SGD 3 million.
Key Takeaway: Exchanges must hold at least an SPI/MPI license to operate legally.
How to Verify an Exchange’s License
- Visit the Monetary Authority of Singapore (MAS) database.
Filter by:
- Payment > Standard/Major Payment Institution > Digital Payment Token Service.
- Check the exchange’s registered local entity name (e.g., "COINBASE SINGAPORE PTE. LTD.").
As of October 2023, only 6 exchanges hold active DPT licenses.
Licensed Exchanges in Singapore (2025)
| Exchange | Licensed Since | POR* Proof | Local Bank Custody | Notable Features |
|---|---|---|---|---|
| Coinbase | 2023 | ❌ | ❌ | NYSE-listed |
| Crypto.com | 2021 | ✅ | ❌ | PoR published |
| Independent Reserve | 2020 | ❌ | ❌ | Annual third-party audits |
| Coinhako | 2022 | ❌ | ❌ | SG-focused |
👉 Compare all licensed exchanges
POR = Proof of Reserves
Risks of Using Unlicensed Exchanges
- No asset segregation: User funds mixed with corporate assets.
- Zero pre-approval vetting: Higher risk of insolvency/scams.
- Limited recourse: MAS offers no protection for unlicensed platforms.
Pro Tip: Always check MAS’s database before depositing funds.
FAQ
1. Is Binance legal in Singapore?
No. Binance exited Singapore in 2022 after failing to secure a DPT license.
2. Can I trade on international exchanges legally?
Yes, but only if they hold an SPI/MPI license (e.g., Coinbase SG).
3. How often does MAS update its license list?
Licenses are published after approval—no public tracker for pending applications.
4. What’s the safest Singapore-based exchange?
Crypto.com leads in transparency with regular PoR updates.
👉 Explore Crypto.com’s reserves
Final Thoughts
Singapore’s strict licensing ensures only audited exchanges operate locally. Prioritize platforms with:
- MAS-issued DPT licenses.
- Proof of Reserves.
- Third-party audits.
For deeper insights, read our Ultimate Crypto Exchange Safety Guide.