Singapore’s shift from a crypto-friendly hub to stringent regulation stems from balancing innovation with financial stability. Initially, the Monetary Authority of Singapore (MAS) fostered a welcoming environment through the Payment Services Act (2019), attracting crypto firms with clear guidelines and no capital gains tax. However, rising concerns over money laundering, terrorism financing, and retail investor risks prompted tighter controls. By 2024, MAS expanded the Act, imposing strict licensing, robust AML/CFT measures, and asset custody rules. High-profile crypto collapses and global regulatory trends further drove this pivot. While Singapore remains a crypto hub, with over 1,000 Web3 firms, the focus has shifted to consumer protection and market integrity, ensuring only compliant players thrive. This cautious approach solidifies Singapore’s reputation as a trusted, innovative financial center amid a volatile crypto landscape.