Singapore’s Crypto Exodus: Why Are Investors Fleeing Digital Assets?

Once a crypto darling, Singapore’s love affair with digital assets is cooling fast. What’s behind the sudden shift—and is it a blip or a trend?

Regulatory Whiplash Hits Hard

After years of playing nice, Singapore’s regulators are cracking down. The Monetary Authority of Singapore (MAS) has tightened rules—licensing hurdles, advertising bans, and stricter KYC requirements are squeezing retail participation.

Institutional Domination

While retail investors retreat, whales and institutions are doubling down. The little guys? Priced out or spooked by volatility. Classic finance irony: the ’democratizing’ asset class is becoming a playground for the big boys.

Global Rivals Lure Talent

Dubai’s zero-tax crypto hubs and Hong Kong’s pro-crypto pivot are stealing Singapore’s thunder. When the going gets tough, the tough relocate—taking liquidity and innovation with them.

Bear Market Blues

Post-bull market hangovers hit harder when regulators turn the screws. With prices stagnant and compliance costs soaring, even die-hard HODLers are questioning the math.

Singapore isn’t abandoning crypto—it’s just no longer willing to be the Wild West. The question now: Will this ’grown-up’ approach stabilize the market or stifle it? Meanwhile, traditional bankers are quietly smirking into their lattes.

Bitcoin Remains Dominant Crypto Asset in Singapore

However, the survey suggests that bitcoin remains the dominant asset as over 68% crypto investors held BTC. Meanwhile, 48% held Ethereum. Furthermore, over 53% of current investors plan to increase their holdings and 17% of non-investors are considering entering the market. Bitcoin is viewed by 86% Singaporean residents as a currency, store of value, or investment asset. 

Despite the drop in ownership, sentiment remains bullish.

Investor opinions are split on trust in stablecoins versus Bitcoin, according to the survey. 44% of respondents say they trust stablecoins more, largely because of their price stability and connection to fiat currency.

Stablecoins Gain Momentum with Regulatory Clarity

According to the survey, 21% of Singaporean crypto investors currently own stablecoins and a further 25% held them in the past. USD-pegged tokens are most preferred, held by 83% of stablecoin investors.

Importantly, the Monetary Authority of Singapore (MAS) views stablecoins as a promising FORM of digital payment token with the
potential to serve as a credible digital medium of exchange and a bridge between fiat and digital asset ecosystems. On that note, MAS finalised a regulatory framework specifically for single-currency stablecoins (SCS) pegged to the Singapore dollar or G10 currencies and issued in Singapore, to ensure a high degree of value stability and financial soundness.

Key Takeaways

• The survey suggests that Bitcoin remains the dominant asset as over 68% crypto investors held BTC. 

• Stablecoins are emerging as a crucial bridge between traditional finance and the decentralized world. The IRCI data shows that 46% of crypto investors in Singapore own or have owned stablecoins, primarily for trading and DeFi activities.