Is Buying Tether (USDT) Legal in Singapore?

Yes, Singaporeans are legally allowed to purchase, trade, and hold Tether (USDT). However, USDT and other cryptocurrencies aren't accepted as legal tender, meaning they can't be used for official payments or settling debts.

The Monetary Authority of Singapore (MAS) has implemented clear guidelines for crypto activities, emphasizing strict Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. Investors should always choose cryptocurrency exchanges in Singapore that are licensed by MAS, as these platforms ensure compliance, security, and transparency.

How to Buy USDT in Singapore

Investing in Tether (USDT) in Singapore is simple when using trusted exchanges like Independent Reserve, favored for transparent pricing, ease of use, and strong liquidity in USDT trading.

Independent Reserve supports Singapore Dollar (SGD) deposits conveniently through bank transfers (FAST and PayNow), as well as debit and credit card payments. 

Here are the steps for purchasing USDT on Independent Reserve in Singapore:

1. Create an Account: Head to the Independent Reserve website and register by providing basic personal details, such as your email address and phone number.
2. Identity Verification: Complete the required identity check by submitting documents like your Singapore NRIC, passport, or driver’s license, complying with local KYC standards.
3. Deposit Funds: Log into your Independent Reserve account, select the "Deposit" option, and add SGD using your preferred payment method.
4. Purchase USDT: With your account funded, choose the USDT/SGD trading pair, specify the amount you’d like to buy, confirm your transaction details, and complete the purchase.

Best Exchanges to Buy USDT in Singapore

For Singaporean investors aiming to buy Tether (USDT) securely with SGD, several reliable crypto exchanges are available. Leading platforms include Independent Reserve, Coinhako, Gemini, and Crypto.com, each known for stringent security standards, clear pricing structures, and multiple convenient SGD deposit options.

Here’s a quick summary to help you select the most suitable exchange for you:

SGD to USDT Fees

Investors purchasing Tether (USDT) with Singapore Dollars (SGD) should understand fee structures clearly to minimize trading costs. Here's a simplified breakdown of typical fees when buying USDT through an exchange:

• Deposit Costs: Depositing SGD via bank transfers (FAST or PayNow) from local banks like UOB and OCBC Bank usually comes with zero fees. However, deposits via cards may include additional charges ranging from 1.5% to 3%, depending on the exchange.
• Withdrawal Charges: Withdrawing SGD to your local bank account usually incurs minimal or no fees; however, crypto withdrawals typically involve blockchain transaction fees.
• Trading Fees: Independent Reserve and Coinhako typically use set pricing structures, with fees around 0.5% per transaction. Gemini and Crypto.com generally employ a maker-taker fee system, averaging 0.6% for makers and 0.8% for takers.

To effectively manage your transaction costs, consider using bank transfers for deposits and withdrawals and select exchanges known for competitive fees and clear disclosures.

Tax Implications for Tether in Singapore

In Singapore, Tether (USDT) is categorized as a digital payment token rather than official currency. The Inland Revenue Authority of Singapore (IRAS) has issued clear guidance indicating that individuals holding cryptocurrencies primarily as investments are typically exempt from capital gains tax, as Singapore does not impose such taxes on personal investment gains.

However, businesses actively trading, mining, or staking USDT may have their profits classified as taxable income, subject to corporate income tax, currently at a flat rate of 17%. Likewise, individuals who earn USDT through commercial activities or as remuneration might need to report such income under personal income tax rules, which feature rates ranging up to 22%.

About Tether (USDT)

Tether (USDT) is a widely used stablecoin pegged 1:1 to the U.S. dollar, designed to offer price stability in the volatile cryptocurrency market. Launched in 2014 by Tether Limited Inc., USDT operates across multiple blockchains, including Ethereum, Tron, and Solana, facilitating seamless transactions and interoperability within the crypto ecosystem. 

The token's value is maintained through reserves comprising U.S. Treasury bills, cash equivalents, and other assets, with Tether providing quarterly attestations to affirm its backing. USDT serves as a vital tool for traders and investors, enabling swift and cost-effective transfers, hedging against market volatility, and participating in decentralized finance (DeFi) applications. 

Final Thoughts

When buying Tether (USDT) in Singapore, choosing exchanges licensed by MAS, like Independent Reserve or Coinhako, ensures compliant trading. 

Keep fees low by using bank transfers for SGD deposits, and stay organized by maintaining clear transaction records to simplify tax reporting. Understanding Singapore’s crypto regulations and selecting the right exchange will protect your investments and help you trade confidently.