Crypto Taxes in Singapore: 2026 Guide for Residents

At a Glance

• 0% Capital Gains Tax: No tax on profits from long-term investments, regardless of the amount.
• Stricter Regulations (June 2025): Leverage trading and incentives are banned to protect retail investors.
• Korean Reporting Obligations: If your total overseas financial account balance exceeds 500 million KRW, you must report it to the Korean National Tax Service.

One of the most common things you hear while living in Singapore is, "Isn't crypto tax-free there?" While Korea deals with complex financial investment taxes, is Singapore truly a crypto paradise? The short answer is: "It's half-true." Like many of you, I went through a lot of trial and error when I first arrived, from opening exchange accounts to figuring out transfers.

As we move into 2025 and 2026, the Monetary Authority of Singapore (MAS) has significantly tightened regulations. This means the risks of using just any exchange or "blindly investing" have increased. As a fellow resident and parent, I’ve summarized the essential crypto investment info we need to protect our family assets.

Is Crypto Tax Really $0 in Singapore?

The biggest draw for crypto investors in Singapore is the absence of Capital Gains Tax. This means if you buy Bitcoin, hold it for a year, and sell it for a profit, you don't owe a cent in tax. However, this doesn't apply to every situation.

• Long-term Investment (HODL): If you sell after holding for personal investment purposes, the profit is tax-free.
• Professional Trading: Even if you have a full-time job, if you trade dozens of times a day or engage in high-frequency trading for profit, the Inland Revenue Authority of Singapore (IRAS) may classify this as "business income." In this case, personal income tax rates (0% to 24%) apply.
• Staking and Airdrops: In principle, regular staking rewards are subject to income tax. However, small or irregular amounts are often exempt, so it's vital to keep good records.
• GST Exemption: Since 2020, exchanging crypto for fiat currency or other tokens is exempt from Goods and Services Tax (GST).

New Retail Investor Protections (Effective June 2025)

On June 19, 2025, MAS implemented strong measures to protect retail (individual) investors. Previously, you could use leverage or get bonus coins just by signing up, but that has changed.

• Risk Awareness Assessment: All retail customers must now pass a mandatory risk test before they can start trading. This ensures you understand the volatility of crypto.
• Ban on Incentives: Marketing tactics like referral bonuses or "free coins" upon signup are now prohibited. If an exchange offers these, they likely aren't MAS-licensed, so be careful.
• Leverage Restrictions: Retail investors can no longer trade using leverage (borrowing money against crypto). You can only invest within the limits of the cash you actually hold.

Retail vs. Accredited Investors (AI)

Singapore categorizes investors based on assets or income. Becoming an Accredited Investor (AI) offers more freedom but comes with more responsibility.

If you qualify as an AI, you can use institutional-grade platforms like DBS Digital Exchange (DDEx). For most residents, it is safest to use "Major Payment Institution" licensed exchanges like Coinhako, Coinbase, or Gemini.

Checklist for Korean Expats

Some residents focus only on Singapore tax laws and end up getting contacted by the Korean National Tax Service. While we live abroad, maintaining Korean citizenship may trigger certain reporting duties.

• Overseas Financial Account Reporting: If the sum of all your overseas financial accounts (including crypto exchanges) exceeds 500 million KRW on the last day of any month, you must report it to the Korean tax authorities the following June. Penalties for non-compliance are significant.
• Travel Rule: When sending more than SGD 1,500 worth of crypto to a private wallet (like MetaMask), you must register the sender and recipient info with the exchange. This is a standard anti-money laundering procedure.
• Tax Residency: To benefit from Singapore’s tax rates, you generally need to stay in the country for at least 183 days a year. Shorter stays might lead to being classified as a non-resident, subject to a flat 24% tax rate.

Key Takeaways & Tips

Here is some practical advice for safe crypto investing in Singapore:

• Documentation is Key: Even if capital gains are tax-free, you may need to prove the source of funds later. Keep detailed records of purchase/sale dates, prices, and quantities in Excel or an app.
• Verify Licenses: Always check the MAS website to ensure the provider is licensed. Major players include Coinhako and Crypto.com.
• Bank Integration: Choose exchanges that support FAST transfers for real-time deposits and withdrawals from your DBS or OCBC accounts.
• No CPF for Crypto: