Singapore Crypto Market: Trust Trumps Fees as Key Investment Driver

Singapore's Crypto Market: Trust Trumps Fees as Key Investment Driver

Singapore's retail crypto market is maturing, with traders increasingly valuing trustworthy platforms over those offering lower fees, according to a new survey. The joint survey by finance platform MoneyHero and crypto exchange Coinbase found that 61% of financially savvy Singaporeans now hold crypto assets. Trust has emerged as the primary deciding factor when choosing an exchange, outweighing fee considerations.

The data suggests that Singapore’s crypto ecosystem is moving beyond simply seeking the cheapest exchange to valuing regulated frameworks, security, and long-term viability. The study, encompassing 3,513 retail investors and crypto-curious Singaporeans, also revealed that 58% identify as long-term holders, with 42% having held investments for over two years.

Furthermore, the survey showed that respondents keep their crypto allocations under 10% of their overall portfolios, holding an average of three tokens each. This suggests a balanced approach, combining discipline with diversification. The 61% ownership rate among financially literate Singaporeans underscores that cryptocurrency is no longer a niche market.

According to the survey, 27% of non-holders expressed interest in investing within the next 12 months, indicating further growth potential in the region. Investor perceptions of crypto are divided: 44% view it as an asset, while 29% see it as a tool for speculation.

Social media is a major source of crypto education, cited by 62% of respondents. Researchers note this presents both opportunities and risks related to misinformation. 55% mentioned friends and family as sources, while 43% cited news and media. Exchange blogs were referenced by 27% as primary educational resources.

Regarding confidence in crypto knowledge, 48% reported feeling confident, while 52% expressed a lack of confidence.

Progressive Yet Strict Regulatory Approach

Singapore is a recognized financial hub, boasting low corporate taxes, pro-business regulations, and an AAA rating from Fitch. The city-state was an early adopter of crypto regulation, enacting the Payment Services Act (PSA) in 2020. This legislation defines digital payment tokens (DPTs) as digital representations of value stored or traded electronically.

While regarded as a progressive crypto hub, Singapore is also highly regulated. In June, the government directed local crypto firms to cease overseas activities targeting foreign markets, potentially facing penalties like a $200,000 fine or up to three years of imprisonment. The Monetary Authority of Singapore (MAS) has stated there will be no grace periods or transitional arrangements.

Recently, Singapore signaled an upcoming shakeout of unregulated stablecoins. MAS Managing Director Chia Der Jiun stated on November 13th that stability needs reinforcement and that unregulated tokens have a poor track record of maintaining their peg. He added that regulations will need to be strengthened as stablecoins become more systemically important.