The Remarkable Rise in Crypto Ownership

Singapore has solidified its position as a global leader in cryptocurrency adoption, with a striking 32 percent of residents now owning or having owned digital assets in 2026. This marks a notable increase from 29 percent the previous year, according to the latest Independent Reserve Cryptocurrency Index (IRCI) survey. Conducted among over 1,500 Singaporeans aged 18 to 78 between late January and early February, the findings highlight a maturing market where confidence is growing despite ongoing price fluctuations.

This surge reflects broader trends in financial innovation, where cryptocurrencies—digital or virtual currencies secured by cryptography and operating on decentralized networks like blockchain—are transitioning from niche speculation to mainstream portfolio components. The IRCI score dipped slightly to 42 from 43, signaling a shift from hype to sustainable participation across awareness, adoption, positivity, and activity pillars.

Demographic Shifts Fueling the Boom

Younger generations are at the forefront of this adoption wave. Generation Z (ages 18-25) saw ownership double to 36 percent from 18 percent, while younger millennials (25-34) jumped to 46 percent from 27 percent. Older millennials (35-44) rose to 37 percent from 24 percent, boomers (55+) climbed to 18 percent from 10 percent, and Gen X (45-54) held steady at around 20 percent.

These digital natives, immersed in technology from an early age, view crypto not just as a quick profit play but as a tool for long-term wealth building. The data underscores how life stages influence engagement: younger groups chase growth and passive income, while mid-career professionals prioritize diversification.

The Sandwich Class: Middle-Income Innovators

A standout group is Singapore's 'sandwich class'—middle-income households aged 35-54 juggling support for aging parents and children, often earning too much for subsidies yet facing cost-of-living pressures. Among them, 50 percent see investing as crucial to sustaining wealth, compared to 37 percent overall.

They allocate conservatively: 35 percent dedicate under 5 percent of portfolios to crypto, with 27 percent at 11-20 percent. Monthly investments average S$501-S$1,000, and nearly half use dollar-cost averaging (DCA), buying fixed amounts regularly to mitigate volatility. Holding periods skew long-term, with 48 percent in assets for 3-5 years.

Building Confidence Amid Market Swings

What underpins this resilience? Bitcoin's 2025 rally past US$160,000, coupled with exchange-traded fund (ETF) approvals elsewhere and institutional inflows, has bolstered sentiment. Regular investors report higher profits—55 percent gained versus 43 percent for irregular ones—with 47 percent of all holders profitable overall.

Awareness stands at 86 percent, though slightly down, while trust factors include clear regulations (54 percent), price stability (50 percent), and business adoption (42 percent). This pragmatic approach marks a departure from early hype, with investors viewing crypto as complementary to stocks and bonds.

Bitcoin Dominates, Diversification Follows

Bitcoin (BTC) anchors portfolios at 80 percent ownership among sandwich class investors (67 percent overall), followed by Ethereum (ETH) at 56 percent, Solana (SOL) at 26 percent, and stablecoins like USDT/USDC at 30 percent. Memecoins play a minor role, emphasizing quality over speculation.

Top exchanges in Singapore, licensed by the Monetary Authority of Singapore (MAS), include Independent Reserve, Coinhako, and global players like Kraken and Coinbase, offering secure trading with low fees and SGD support. Strategies lean toward holding (HODLing) and selective selling—65 percent of sandwich investors traded in the past year.

Navigating Singapore's Regulatory Framework

Singapore's pro-innovation yet prudent stance, via MAS, fosters this growth. The Payment Services Act (PSA) mandates licensing for digital payment token (DPT) services, ensuring anti-money laundering (AML) compliance. Recent updates include a 2026 stablecoin framework requiring full reserves and easy redemption, plus tokenized central bank digital currency (CBDC) pilots under Project Guardian.

Bank crypto rules delayed to 2027 align with Basel standards, treating assets flexibly. No retail spot Bitcoin ETFs yet, but access via regulated brokers. For details, see the MAS Project Guardian page.

Risks and the Scam Threat

Volatility persists—Bitcoin traded US$70,000-75,000 in early 2026 after peaking at US$126,000—but education mitigates it. Scams, however, surge: police reported rising crypto transfer frauds in March 2026, with over 2,800 cases in January alone costing S$47.4 million.

• Use only MAS-licensed platforms.
• Enable two-factor authentication (2FA) and hardware wallets.
• Avoid unsolicited investment pitches promising high returns.
• Report to police via e-services.

MAS and Singapore Police Force (SPF) advisories emphasize vigilance. Check the SPF scam advisory.

Crypto Entering Mainstream Commerce

Payments gain traction: fintechs like TripleA and HitPay enable 20,000 SMEs to accept stablecoins, auto-converting to SGD. Luxury retail, travel, and services increasingly integrate crypto, though full merchant adoption lags behind investment use.

Over 50 percent of users have made payments at least once, per surveys, boosted by seamless apps. Events like TOKEN2049 Singapore 2026 underscore the ecosystem's vibrancy.

No Capital Gains Tax: A Key Incentive

Singapore's tax regime favors investors: no capital gains tax (CGT) on personal crypto holdings. Gains from trading as a business are income-taxed at progressive rates up to 24 percent, but long-term investors benefit from clarity via IRAS guidelines distinguishing investment from trade.

GST (9 percent) applies to goods/services bought with crypto, treated as barter. Reference the IRAS Digital Tokens Guide for compliance.

Optimistic Outlook to 2030

Bitcoin price expectations soar: only 23 percent foresee under US$50,000 by 2030 (down from 57 percent in 2023), 38 percent at US$100,000-250,000 (up from 8 percent), and 26 percent above US$250,000 (from 3 percent). Stablecoin growth, tokenized assets, and CBDC integration promise stability.

Singapore's hub status attracts firms, boosting GDP via fintech jobs and innovation. Challenges like geopolitical tensions may spur diversification.

Photo by CHUTTERSNAP on Unsplash

Actionable Steps for Aspiring Investors

• Research thoroughly: Understand blockchain (distributed ledger tech) and tokens (payment/utility/security types).
• Start small: Use DCA on licensed exchanges.
• Diversify: Balance with traditional assets; aim 5-10 percent allocation initially.
• Secure assets: Hardware wallets, avoid public Wi-Fi.
• Stay informed: Follow MAS updates, IRCI reports like this Straits Times analysis.

As crypto embeds in Singapore's economy, informed participation can yield rewards while regulations safeguard growth.