Cryptocurrency is one of the fastest-growing investment classes in Singapore. Bitcoin is leading this steady surge, with many local investors allocating a significant portion of their investment portfolio to this digital token.
As notable as Bitcoin is in Singapore’s current investment climate, primarily due to its upward trajectory over a long-term timeline, it’s not an infallible investment option.
Scams, phishing attempts, and security breaches are unfortunately commonplace in the realm of cryptocurrency, and malicious actors can bypass vulnerable accounts and drain a victim’s entire wallet within a moment’s notice.
In fact, in Singapore alone, there have been over $1.1 billion SGD worth of cryptocurrency that have been stolen in 2024. If that isn’t a clear indication to strengthen your account security, then it’s difficult to imagine what would be.
The good news is that many Bitcoin exchanges in Singapore have protective measures in place to fortify their systems and prevent cyber threats from breaching the platform. But even so, it’s essential to perform protective measures on an individual level to safeguard investments closely.
This article will highlight the ways that crypto exchange platforms in Singapore are improving their security measures. It’ll also list down ways that Singaporean investors can keep their cryptocurrency in safe hands from setting up the initial buy order to the final transaction.
Let’s jump right into it.
Security Measures of Singapore Crypto Exchanges: How Safe Are Your Crypto Investments?
Singapore has a flourishing crypto landscape with a plethora of Singapore Bitcoin exchange platforms catering to both retail and institutional investors. This makes it a fairly safe landscape to start buying and selling cryptocurrency.
The city-state also boasts a strong regulatory framework that offers great transparency and security for its citizens. This positions the country as a leading crypto hub in the APAC region.
With that said, this begs the question: How safe is it to buy and sell cryptocurrency such as Bitcoin in Singapore? Are crypto platforms in Singapore safe? Let’s explore the investing environment in the following sections.
Strict Licensing Guidelines Under The Payment Services Act
Crypto investing and exchange activities in Singapore are regulated by the Monetary Authority of Singapore, or MAS for short.
This local government body pushed forth the PS Act in 2019 to enforce strict compliance on digital service providers on matters that involve transacting digital assets.
This act grants Singaporeans a reliable vote of confidence for licensed crypto exchange platforms that operate within the city-state. This is because of the inherently strict and rigid rules that these platforms will need to abide by in order to secure a license to operate in the country.
In particular, the MAS mandates that all licensed Digital Payment Token service providers implement strong safeguards to protect customer assets. This includes conducting customer due diligence, enforcing anti-money laundering protocols, maintaining robust cybersecurity frameworks, and ensuring operational resilience.
Getting an exchange licensed under the MAS isn’t a one-time affair. This department regularly conducts reviews to ensure that the cryptocurrency platform is in compliance with the laws. If internal reviews reveal discrepancies or severe infractions, the MAS have the authority to revoke the licenses of the platform.
This system ensures that crypto exchange platforms are always in compliance with local laws, granting Singaporeans the highest-quality standard for transacting cryptocurrencies like Bitcoin.
Security-Rich Features in Various MAL-Licensed Platforms
Besides the robust regulations that cater to Singaporean investors, many exchange platforms also uphold additional security measures that further cement the security infrastructure surrounding the crypto space.
For instance, crypto exchange platforms like Independent Reserve and Coinhako have two-factor authentication systems in place to reinforce security measures and reduce the severity and impact of security threats.
Furthermore, some licensed platforms also enable users to conduct withdrawal address whitelisting or create multi-signature wallets, allowing users to limit withdrawals only to pre-approved wallet addresses.
These platforms also have additional layers of defence like transaction monitoring, insurance, and ISO certifications to ensure safety in the trading environment for everyday and institutional investors.
All these security features play a role in protecting accounts and ensuring the safety of Singaporeans who choose to invest in Bitcoin and other cryptocurrencies.
Encryption to Protect Sensitive User Data
Another security measure that most Bitcoin exchange platforms have is encryption. On a fundamental level, this type of protection becomes rendered unreadable to unauthorised parties through built-in, end-to-end protocols such as SSL/TLS.
Furthermore, even staff from the company’s headquarters may not be able to access data due to zero-knowledge architecture being the baseline way these platforms operate.
With these encryption security systems in place, data breaches become less of a risk, and users can rest easy knowing that crypto funds within their exchange platform of choice are protected 24/7.
How to Protect Your Crypto Investments
If you’ve just set aside a portion of your capital to Bitcoin or other cryptocurrencies, then it’s essential to protect them at all costs.
The crypto scene can be rewarding, but it can also be turbulent and risky. This is especially true if you’re coming in unaware of the seedy side of the internet.
Let’s look at some ways you can protect your crypto investments in a practical fashion.
Stick with Regulated and Licensed Exchanges
One surefire way to keep your crypto funds protected is by choosing to put your funds in the best bitcoin exchange that’s MAS-licensed.
As previously mentioned, getting licensure as a crypto exchange platform is a difficult process. It requires crypto businesses to meet strict standards to ensure a high degree of consumer protection and operational integrity.
By sticking with licensed platforms, you, as a user, can have peace of mind knowing that your funds are handled under a strong regulatory framework. It’s not completely foolproof, but it’s a good start.
Enable Platform-Specific Security Features
Investors shouldn’t solely rely on the country’s regulations when choosing an exchange platform. You should also look inwardly and determine whether the platform has layers of protection that make it worth choosing over the competition.
Fortunately, the bulk of most Bitcoin exchanges operating in Singapore have a variety of features that uphold user security. For instance, 2FA—or two-factor authentication—is a feature found in most exchanges that allows users to restrict login attempts from devices outside of your usual rotation, helping keep your account secure even if your password has been compromised.
A whitelist feature also exists and helps users pre-approve specific wallet addresses to ensure that you don’t accidentally send funds to the wrong address, or allow hackers to move funds to their own wallet.
The good news is that these features are all easy to activate and can help in securing your account in defending it against cyber threats. If you haven’t activated them yet, then go ahead and do so to ensure maximum protection.
Store The Bulk of Your Crypto in Dedicated Wallets
Another useful tip: don’t keep the majority of your crypto investments inside centralised platforms. These exchanges, even with all the safeguards in place to protect consumers, are still susceptible to data breaches and cyberattacks.
The best and most secure place to store your crypto tokens is in a dedicated wallet, either a cold wallet or a hot wallet. A hot wallet is an online wallet where you can easily transfer your funds, whereas a cold wallet is a hardware device that takes your digital tokens offline and out of reach from hackers.
Putting your crypto in a personal wallet ensures that you have full custody of your digital investments, making it critical for safeguarding it from any malicious threat.
Don’t Fall for Common Scams and Phishing Tactics
It’s critical that you remain vigilant in the face of rising scams and phishing tactics that pervade this largely anonymous and digital space. Many fake websites exist and can trap users into sharing private information like their wallet address or account passwords.
Moreover, some scammers may also use deepfake images or videos of famous people to convince people into thinking that a public figure is officially sponsoring a particular giveaway or contest. Scammers may also approach things the old-fashioned way and send phishing links in emails, private messages, and public forums.
In any case, it’s essential to always be sceptical of everything you click, especially in one-on-one messages.
Unlike with credit cards, you can’t reverse transactions in the crypto space. As such, always stay alert and question anything that feels off, especially when dealing with unsolicited messages or offers that seem too good to be true.
Stay safe out there!