Source: Cointelegraph Original: "{title}"
Key Points
In 2024, 26% of Singaporeans own cryptocurrency, making the country a leader in cryptocurrency 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) under the Payment Services Act.
Residents can purchase Bitcoin through centralized exchanges, non-custodial wallets, decentralized exchanges, P2P platforms, and Bitcoin ATMs.
Using non-custodial or cold wallets is a better way to ensure the security of Bitcoin holdings compared to using custodial options like exchange wallets.
Singapore is one of the countries with the highest cryptocurrency ownership rates. In 2024, 26% of Singaporeans reported owning cryptocurrency, a remarkable figure that far exceeds the ownership rates in the United States (21%), South Korea (13.6%), and Hong Kong (14.3%) during the same period. The country plays a significant role in cryptocurrency adoption in the Asia-Pacific region.
When purchasing Bitcoin, this city-state offers various methods. The country's robust digital infrastructure and supportive regulatory environment create a positive atmosphere for cryptocurrency adoption, which is also reflected in the statistics.
This article briefly discusses cryptocurrency regulations in Singapore. You will also learn about various methods to purchase Bitcoin in Singapore, from centralized exchanges to Bitcoin ATMs.
Is Bitcoin legal in Singapore?
Yes, trading Bitcoin is legal in Singapore, but note that it is not considered legal tender.
Singapore has a favorable regulatory environment for cryptocurrencies, allowing you to own and trade cryptocurrencies. According to a ruling by the Singapore High Court in 2023 in the case of Bybit Fintech v. Ho Kai Xin, Bitcoin is considered property that can be held in trust in Singapore.
Although Bitcoin does not have legal tender status in Singapore, you can use it as an alternative means of payment. Legal tender refers to the officially recognized currency that you can use to settle debts and fulfill financial obligations within a country.
The Monetary Authority of Singapore (MAS) regulates cryptocurrencies under the Payment Services Act (PSA) to fully control cryptocurrency transactions and prevent illegal activities such as money laundering or terrorist financing.
Individuals can freely buy, trade, and hold Bitcoin in Singapore, but companies providing cryptocurrency services, such as exchanges, must obtain a license from MAS. This law encourages innovation in the cryptocurrency sector while protecting consumers and financial stability.
Did you know? It is expected that Singapore's cryptocurrency market will generate $229.4 million in revenue by 2025.
How to prepare to buy Bitcoin in Singapore?
If you have not dealt with cryptocurrency transactions before, you may want to understand some key aspects of Bitcoin trading before proceeding. You might want to know how to initiate a transaction, explore various purchasing methods, and learn how to protect your digital assets. These foundational steps help you reduce risks and maximize investment potential.
Registering on a centralized exchange
Registering on a cryptocurrency exchange is the first step into the world of digital assets. The process typically involves visiting the exchange's website or downloading its app. You must create an account by providing an email address and a strong password.
In Singapore, exchanges require you to verify your identity through a Know Your Customer (KYC) process. This usually involves submitting documents such as government-issued ID and proof of address. Once your account is verified by the exchange's administrators, you must fund your exchange wallet using a bank transfer or credit/debit card. Banks in Singapore generally support cryptocurrency exchanges.
Setting up a non-custodial wallet
The wallets provided by cryptocurrency exchanges are custodial, meaning the exchange manages your private keys. You have less control over your funds, which may prevent you from keeping large or long-term holdings in an exchange wallet.
The solution is a non-custodial wallet. Unlike exchange wallets, non-custodial wallets like Trust Wallet give you full control over your funds. You set up credentials to log into the wallet, but the provider does not keep backups. The downside is that if you lose or forget your credentials, you will also lose your funds.
Getting a cold wallet to keep Bitcoin secure
Cold wallets or hardware wallets, devices similar to USB drives, store Bitcoin offline, providing high security. They only connect to the internet when making transactions.
To use a cold wallet, you typically connect it to your computer like a USB. Then use the device's interface to send and receive Bitcoin. Cold wallets offer the highest level of protection against online attacks since they are usually disconnected from the internet.
Did you know? Singapore's strong blockchain ecosystem and supportive regulatory environment make it a major destination for cryptocurrency startups and investments in Southeast Asia. The user penetration rate is expected to reach 55.9% by 2025.
How to buy Bitcoin on a centralized exchange in Singapore?
Most users prefer to buy Bitcoin on centralized exchanges because the process is simple and convenient. Here’s an example using Coinbase:
Step 1: Initiate account creation – Download the mobile app or open the website. Register and complete the KYC process using government-issued identification and proof of residence.
Step 2: Add payment method – Select "Payment Method" and link your preferred option. You can use a bank account, debit card, or initiate a wire transfer.
Step 3: Start trading – To initiate a cryptocurrency purchase on the Coinbase platform, navigate to the "Buy" section on the website. For the mobile app, find the "+" button labeled "Buy" on the home tab.
Step 4: Select Bitcoin from the asset list – Click the "Buy" panel on the website and select Bitcoin. On the mobile app, search for "Bitcoin" in the search bar and click it to open the purchase screen.
Step 5: Enter amount – Use the keyboard or numeric keypad to enter the amount you want to spend in local currency. The app will automatically calculate the equivalent in Bitcoin. Click the arrow to toggle between local currency and Bitcoin amounts.
Step 6: Buy Bitcoin – Click "Preview Purchase" to view the purchase details. Confirm everything is correct, then click "Buy Now."
Once the order is processed, a confirmation interface will appear.
How to buy Bitcoin using a non-custodial wallet in Singapore?
Unlike centralized exchanges, non-custodial wallets allow you to maintain control over your cryptocurrency. These wallets operate on various platforms, including desktops, hardware devices, and mobile phones. Here’s an example using Trust Wallet.
Here’s the process to buy Bitcoin on Trust Wallet:
Step 1: Create a Trust Wallet account
Install the app on your phone and select "Create New Wallet."
Review and accept the privacy policy and terms of service.
Create a six-digit password for your wallet. Keep this password safe and confidential.
Backup your wallet using a 12-word mnemonic phrase. Write down or securely store the mnemonic. If you lose it, Trust Wallet cannot recover the lost wallet.
Confirm the mnemonic by clicking the words in the correct order. Click "Done."
Step 2: Set up payment method
Integrate Trust Wallet with your preferred payment method. Trust Wallet supports various payment options, including debit and credit cards, mobile payments, and bank transfers.
Step 3: Select Bitcoin to purchase
From the "Buy" menu on the main wallet screen, select the desired cryptocurrency or token to initiate the purchase. You will be redirected to a third-party service provider to complete the transaction using the selected payment method. Before confirming, check the relevant transaction fees in local currency.
Select Bitcoin on Trust Wallet and click the buy button.
Step 4: Confirm payment
After verifying the details, click "Confirm" and wait for the funds to be deposited into the specified wallet address.
Once the process is complete, you will receive Bitcoin in your wallet.
How to buy Bitcoin on a decentralized exchange (DEX) in Singapore?
Like self-custody wallets, DEXs allow you to maintain ownership of your assets and private keys. On a DEX, you can purchase wrapped Bitcoin (WBTC) or any other ERC-20 token. WBTC is a version of Bitcoin that allows you to buy and sell BTC on the Ethereum network.
Here’s the process to buy Bitcoin on a DEX, using Uniswap as an example.
Step 1: Set up a cryptocurrency wallet
Download and install a compatible cryptocurrency wallet, such as MetaMask. Create your wallet, securely back up your seed phrase, and fund it with Ethereum to pay for purchase and transaction fees.
Step 2: Connect Uniswap to your wallet
Open the Uniswap website or wallet.
Connect Uniswap to your wallet on the website by clicking "Connect" in the upper right corner.
A QR code will appear that you need to scan with your wallet.
On the Uniswap wallet, click the "WalletConnect" icon in the upper right corner to set up the connection with your wallet.
Step 3: Swap tokens
In the Uniswap interface on the website, select ETH as the token you want to swap. In the target token dropdown menu, search for the version of Bitcoin you want to purchase, such as WBTC or any other ERC-20 Bitcoin token.
In the wallet, click "Swap" at the bottom of the app, then follow the same process, selecting ETH as the token you want to swap and WBTC or any other ERC-20 Bitcoin as the target token.
Step 5: Approve and swap
Check the details, including token amounts, estimated fees, and slippage tolerance. Click "Approve ETH" to authorize Uniswap to access your ETH. Then click "Swap" and confirm the transaction.
After the transaction is processed on the Ethereum blockchain, WBTC will appear in your wallet. You can track its status in your wallet or on a blockchain explorer like Etherscan.
How to buy Bitcoin on P2P platforms in Singapore?
On peer-to-peer (P2P) platforms, you can buy Bitcoin directly from holders. Research trustworthy P2P platforms operating in Singapore that support your preferred payment type.
Step 1: Create your account:
Register on the platform and complete any necessary identity verification (KYC) procedures. This may include submitting your identification and verifying your email or phone number.
Step 2:
Search for Bitcoin offers: Filter based on the vendor's reputation, completion rate, and user reviews. You should also consider their chosen payment methods, currency, and price range.
Step 3:
Start trading: Select a vendor and specify the amount of Bitcoin or fiat currency you want to spend. Typically, the exchange will have a "Buy" button that you can click to start the process.
Step 4: Payment
Complete the payment within the specified timeframe via bank transfer, mobile payment, or any other accepted method.
Exchanges will hold Bitcoin in escrow until the seller verifies receipt of payment. Once the seller confirms payment, the platform will transfer the Bitcoin from escrow to your P2P wallet. To enhance the security of your funds, you can withdraw Bitcoin from the P2P platform.
How to buy Bitcoin using a Bitcoin ATM in Singapore?
Bitcoin ATMs are a convenient way to purchase Bitcoin in Singapore. Before transferring fiat currency to a Bitcoin ATM, you must prepare a wallet to receive Bitcoin. You can find Bitcoin ATMs in public malls, co-working spaces, and convenience stores.
Here’s how to buy Bitcoin from a Bitcoin ATM:
Step 1: Locate an ATM
Use services like CoinATMRadar to locate Bitcoin ATMs that support Bitcoin purchases.
Step 2: Verify your identity
Bitcoin ATMs typically require you to scan a government-issued ID for verification.
Step 3: Start the transaction
Visit the ATM and select "Buy Bitcoin" from the screen. Enter the amount you wish to purchase in Bitcoin or Singapore dollars.
Step 4: Provide your wallet address
Scan the QR code of your wallet with the ATM to determine where the Bitcoin should be sent.
Step 5: Deposit cash
Deposit cash into the ATM equivalent to your transaction amount.
Step 6: Confirm and complete
Review the transaction information, including fees, and confirm.
Your transaction will be processed on the Bitcoin blockchain, and the cryptocurrency will be transferred to your designated Bitcoin wallet.
How to buy a Bitcoin ETF in Singapore?
If you are not willing to invest directly in Bitcoin, you can choose to invest in a spot Bitcoin exchange-traded fund (ETF). These investment funds are designed to track the price of Bitcoin.
Notably, the Singapore-based fund management company Fintonia Group launched the country's first spot Bitcoin fund in 2021 after receiving MAS approval.
Here’s how to invest in a Bitcoin ETF in Singapore:
Step 1: Choose a brokerage platform
Open an account with a reputable brokerage that offers Bitcoin ETFs.
Step 2: Complete KYC verification
To verify your account, submit the required documents, which may include your ID and proof of address.
Step 3: Deposit funds
Transfer funds to your brokerage account using bank transfer, debit/credit card, or other approved methods.
Step 4: Search for Bitcoin ETFs
Use the platform's search function to find Bitcoin ETFs traded on global exchanges.
Step 5: Place an order
Determine how many units you wish to purchase. Choose between a market order (buy at the current price) and a limit order (set your preferred price).
Step 6: Confirm the purchase
Review the information and confirm. Once the transaction is completed, the ETF will be added to your portfolio.
Did you know? The spot Bitcoin ETF approved by the U.S. Securities and Exchange Commission (SEC) on January 10, 2024, accumulated approximately $35.9 billion in total assets in its first full year of trading.
Can tokenized Bitcoin be used in Singapore?
Despite increasing acceptance, the core functionality of Bitcoin remains limited. Its blockchain lacks the advanced smart contracts and decentralized applications necessary for many cryptocurrency users and the growing Web3 ecosystem.
Tokenized Bitcoin reflects the value of Bitcoin across various blockchains, providing a solution. These synthetic assets are similar to stablecoins pegged to fiat currency, enhancing the utility of Bitcoin by increasing programmability and accessibility.
The "Project Guardian" is a collaborative effort involving regulators, authorities, and the financial sector aimed at simplifying asset tokenization. Standardized processes, automated operations, and facilitating interoperability between blockchains aim to bridge the gap between traditional finance and blockchain technology, paving the way for tokenized securities.
Best practices for buying Bitcoin in Singapore
To securely purchase and store Bitcoin, you must follow best security practices to reduce risks. Choose trusted platforms, whether centralized exchanges, peer-to-peer markets, or decentralized exchanges, and ensure they comply with local regulations. A secure internet connection and two-factor authentication (2FA) on your account are also necessary to enhance security.
Before purchasing Bitcoin, consider transaction fees, market pricing, and payment methods for a cost-effective purchase. Once you buy Bitcoin, transfer it to a wallet where you can control the funds. Non-custodial wallets give you control over the private keys, while cold wallets ensure optimal security by keeping funds offline.
Stay informed about Bitcoin regulations and market trends so you can make informed investment decisions and protect your digital assets.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
