Singapore keeps retail out of crypto for now

“That would be the next phase, if you ask me: looking at digital assets for the usage of payments,” she said via Zoom, citing opportunities in instant transfers that could cut costs for service providers.

“In the payment space, the profit margin is very low for the service providers,” Wang said. “A lot of them make money from, say, foreign exchange. So from a payment service provider perspective, I do think at least some of my clients… want to be able to achieve instantaneous transfers.”

Interest in digital assets surged after the US passed a law setting up a framework for payment stablecoins. Locally, Singapore had an early lead: the central bank began consulting the market on digital payments in 2017, laying the groundwork for the Payments Services Act.

By 2019, regulations had focused on activities rather than specific products, allowing flexibility for emerging technologies.
MAS uses broad, tech-neutral rules. Existing laws on consumer protection, anti-money laundering, and terrorism financing helped Wang advise clients before specific digital asset rules existed.

Tokenisation and quantum computing may prompt regulatory updates. “Tokenisation is something we definitely need to look into,” Wang said. “And I’m very sure the regulators are looking into it as well.”

Compared with Hong Kong, Singapore has a more mature digital asset framework, though Hong Kong imposes stricter storage rules for crypto, requiring 98% of assets in cold wallets versus Singapore’s 90%.

Wang said Singapore regulates a broader range of digital assets, whilst Hong Kong focuses on virtual asset exchanges.
The approaches to central bank digital currencies and decentralised finance will also shape each market. Wang noted that regulators should decide how private tokens will interact with these currencies. “Am I willing to give up certain controls over that?” she asked.

Wang is skeptical about unregulated decentralised finance adoption. “If you want to be in this space and you don’t want to be regulated, you can’t go far. The reality is that you can’t get institutional support.”

Many clients, she added, have chosen to operate within regulatory frameworks. “Regulation is the way to go. In fact, a lot of my clients have now decided to be regulated.”