What Singapore can do to be a global crypto leader

For years, Singapore has been at the vanguard of technology and finance. Its strategic posture - pragmatic, forward-looking, and robust regulatory oversight — has earned it a reputation of a trusted global hub for capital, innovation, and business. Singaporeans themselves are not new to crypto. As of 2023, 57% of finance forward Singapore residents own cryptocurrencies. And, the future of Singapore sees crypto as an inevitable feature of their financial lives, with approximately 40% of Gen Z and millennials holding crypto.

As the world charts the future of finance and digital assets, Singapore faces a new challenge: will it continue to lead, or risk falling behind? 

The Global Context Has Shifted

Major Asian, including Singapore, and European economies historically outpaced the United States on providing clear rules for digital assets. While regulatory clarity is a mainstream catalyst for new technology, so is harnessing innovation as a strategic priority. The U.S. has now reversed course from apprehension to opportunity. The Trump Administration has elevated both AI and crypto as national priorities, appointing a dedicated leader in David Sacks to oversee this dual innovation strategy. Meanwhile, peer jurisdictions have adapted and are moving fast:

• Hong Kong responded to market feedback with the ASPIRe Framework, aiming to attract global digital asset platforms with more flexible requirements than previously introduced.

• The UAE is cultivating a multi-regulator framework, allowing firms to choose between VARA, ADGM, and DIFC, with clear licensing regimes, regulatory labs, sovereign investment participation, and more.

• The UK has committed to becoming a global hub for digital assets, laying out a comprehensive legal and regulatory roadmap for the future. 

The global message is clear: this is a new era for crypto — one focused on enabling innovation, not stifling it.

Singapore’s Strong Foundations Are at Risk

Singapore is not starting from scratch. In many ways the Monetary Authority of Singapore (MAS) has led the way globally, both in framing regulation as well as facilitating innovative test-and-learn projects. Specifically, Singapore:

• Created a credible and respected licensing regime for digital assets and stablecoins.

• Launched cutting-edge pilots like Project Guardian and Project Orchid.

• Attracted global founders through initiatives like the EDB’s Global Founders Program, and hosts 1,220 onchain startups, with 640 receiving funding.

• Maintained its strength in foreign exchange (FX) and cross-border payment systems.

• Sustained its status as a regional hub for financial institutions and technology companies.

Singapore has already laid the right foundations to be a global hub for digital assets, with a reputation for regulatory clarity and institutional rigor. By recalibrating its posture toward retail access and crypto-native platforms, Singapore can build on this momentum — unlocking new capital, attracting top-tier talent, and reinforcing its leadership in financial innovation. By leaning in to crypto’s potential, Singapore can turn cautious signals into a renewed mandate for innovation, capital, and global leadership. 

From Strength to Strength: Embracing Tech as a Pillar of Singapore’s National Strategy

Singapore is a key node in the global financial system for foreign exchange, cross-border flows, and institutional capital. The inevitable evolution of finance — onchain capital formation, tokenised assets, programmable money — builds directly on Singapore’s strengths.

To sustain its leadership, Singapore must view digital assets not only as a risk to contain, but certainly as a technology to harness. That means:

• Recognising that meaningful innovation requires embracing both blockchain infrastructure and the assets that power permissionless innovation. 

• Welcoming full lifecycle engagement from global platforms, not just limited experiments.

• Incentivising commercial-scale use of blockchain in FX, asset management, and payment infrastructure.

What Singapore Can Do Next

1. Launch a National Digital Asset Strategy and Establish a Digital Asset Working Group 

Just as Singapore developed a National AI Strategy, the time is ripe for a National Digital Asset Strategy to coordinate efforts across regulators, agencies, and industry. This strategy should articulate a long-term vision that balances prudence with ambition, and frames digital assets as a pillar of Singapore’s economic and innovation agenda.To execute on this vision, Singapore should convene a cross-ministerial Working Group with private sector participation. 

2. Sovereign Funds Should Consider Establishing Strategic Bitcoin Positions 

Bitcoin is increasingly viewed as a digital store of value - akin to digital gold. Countries like the U.S. are exploring its strategic utility. A sovereign reserve — whether for monetary innovation, treasury diversification, or geopolitical relevance — would place Singapore at the forefront of this movement.

3. Ease Guardrails for Onshore Retail Participation

Today, Singapore’s strict restrictions on retail participation and limited product offerings intended to address the risks of consumer harm make it hard for licensed entities to build competitive offerings. A more nuanced regime that enables responsible access and robust disclosures - such as staking, yield-bearing products, and growth-linked offerings - would allow Singaporean consumers and platforms to benefit from innovation safely. 

Restricting licensed actors from marketing blurs the line between regulated and unlicensed players — making it harder for consumers to distinguish safe platforms from risky or offshore alternatives. This is especially material in a world where digital scams and fraud are growing more prevalent. Singapore retail users should know which firms have met the standard of licensing by the Monetary Authority of Singapore. 

4. Double Down on R&D and Upskilling

Singapore can lead in onchain FX settlement, tokenised fund distribution, and stablecoin-based trade finance — but only if the public and private sectors collaborate closely. Aligning MAS, EDB, and IMDA around commercialisation incentives would catalyse meaningful job creation and deepen local capacity.

To future-proof its workforce, Singapore should expand Skillsfuture pathways to include crypto and digital assets roles - particularly in security, compliance, and engineering. By actively supporting upskilling and certification in high-tech, high-growth sectors, Singapore can equip its talent base to lead. Singapore strengthening domestic capacity ensures Singaporeans are drivers - not spectators - in the economy of the future. 

5. Establish a RegLab for Tokenisation, Placing Crypto-Native Players at the Forefront

Crypto-native firms have deep expertise in digital asset custody, trading and tokenisation but cannot contribute to tokenisation projects due to limited regulatory pathways outside of traditional capital markets licensing.  Building on the principals of MAS’s fintech sandbox, a low-risk, Reglab environment, with a clear ramp to commercialisation for DPT licensed operators can accelerate creation of innovative and competitive financial products. 

Emerging industries move fast. Singapore got the hard parts right — regulatory clarity, institutional credibility, and a culture of excellence. But the current tone of caution risks becoming a self-imposed ceiling.

As global momentum around digital assets builds, Singapore has the opportunity to chart a bold course forward to retain its leadership in financial innovation.  Singapore has everything it needs to win - again. It’s time to move from strength to strength and ensure the next decade of finance is built in the Lion City.