Amid the global wave of digital currencies, Singapore is becoming a "hub" for international crypto institutions to expand overseas. Whether it's stablecoin issuance, digital asset trading, or institutional-grade custody and payment clearing, global fintech companies are seeking compliant and stable implementation paths here.
Behind this lies a systematic regulatory framework established by the Monetary Authority of Singapore (MAS): a clear legal framework, a comprehensive licensing system, and a regulatory philosophy that balances risk and innovation, making Singapore stand out among major jurisdictions globally. Unlike the fragmented regulatory environment in the United States and the high compliance costs in Europe, Singapore offers a predictable and workable compliance path.
This series of reports will systematically interpret Singapore's digital asset ecosystem from five dimensions: regulatory framework, licensed institutions, financial institution practices, international cooperation, and institutional advantages. It will help you understand how its system attracts global institutions and provide insights for the Asia-Pacific and global markets.
Regulatory framework and main licensing system
(a) Core regulatory agencies
The Monetary Authority of Singapore (MAS) is the unified regulatory body for Singapore's digital asset and financial markets, responsible for the overall oversight of payment systems, digital currencies, fintech, and related financial services. The MAS employs a combined approach of legislation and licensing to implement a dual regulatory model that integrates functional and risk-oriented approaches for digital asset activities.
(II) Regulatory Laws and Overall Framework
1. The Payment Services Act (PSA)
The Payment Services Act is the foundational legal framework for the regulation of digital assets in Singapore. The Act defines digital currencies/cryptocurrencies as "Digital Payment Tokens (DPTs)" and incorporates related payment, exchange, transfer, and custody services into the payment services regulatory system.
The bill clarifies the following core requirements:
- Digital payment token services require a license to operate;
- Establish anti-money laundering (AML) and counter-terrorist financing (CFT) obligations;
- Clearly define compliance standards such as capital adequacy, customer asset segregation, and risk management;
- Continuous regulation is essential to ensure financial stability and consumer protection.
2. The Financial Services and Markets Act (FSMA)
The Financial Services and Markets Act (FSMA) expands Singapore's regulatory scope for digital asset activities beyond the Payment Services Act. Unlike the PSA, which primarily targets services provided to local Singaporean clients, the FSMA extends its oversight to all entities registered or with a place of business in Singapore that operate from Singapore and conduct digital asset-related business, even if their clients are located overseas. Specifically, any activities involving the issuance, trading, matching, custody, or related services of digital currencies through Singaporean entities fall under the FSMA's regulatory purview.
The law officially came into effect in 2025. MAS explicitly requires that any institution that establishes an entity in Singapore but only provides digital asset services to overseas clients must obtain the corresponding license within a specified period, or face hefty fines or even criminal liability, thus closing the regulatory gap in using Singapore as an "offshore channel" from an institutional perspective.
(III) License Types and Regulatory Division of Labor
Currently, the core licenses in Singapore for the crypto asset sector mainly include the DPT (Digital Payment Token Service) license and the DTSP (Digital Token Service Provider) license under the Payment Services Act.
1. Licenses under the Payment Services Act (DPT Scheme)
According to the Payment Services Act, entities involved in digital payment, remittance, electronic money, or cryptocurrency services must possess one of the following licenses:
(1) Standard Payment Institution (SPI) license – applicable to smaller payment service providers;
(2) Major Payment Institution (MPI) License – applicable to institutions with large transaction volumes and involving cross-border payments or digital asset services.
It should be noted that currently only MPI licensees are authorized to conduct business related to digital payment tokens (DPTs), while SPI licensees have not yet obtained this permission.
Therefore, what is commonly referred to in the industry as a "DPT license" actually refers to an MPI license that includes digital payment token services.
2. DTSP License (Digital Token Service Provider)
Under the Financial Services and Markets Act, entities without a DTSP license are prohibited from providing any digital token-related services to overseas entities through their Singapore business premises. The DTSP license primarily targets digital asset institutions providing "outward services," and its regulatory scope is broader and its compliance requirements are more stringent than the DPT system.
Following the implementation of the new DTSP policy, Singapore conducted a systematic cleanup of crypto companies characterized by "establishing local entities but lacking substantial operations." Except for a few institutions with genuine business operations and compliance capabilities, most non-compliant companies were required to cease relevant operations or relocate their entities out of Singapore by June 30, 2025, effectively constituting a round of regulatory cleanup.
According to industry analysts, if an organization is already under the following regulatory frameworks, it typically does not need to apply for a separate DTSP license:
(1) It already holds a license under the Payment Services Act;
(2) It has obtained an exemption under the Payment Services Act;
(3) It already holds a license under the Securities and Futures Act or the Financial Advisors Act.
It should also be noted that the "DTSP licensed institutions" mentioned in the media reports mostly correspond to "MPI license holders that provide digital payment token services" in MAS's public information system, rather than independently announced DTSP licensed entities.
To date, MAS has not publicly released a complete list of DTSP license holders; relevant information is mainly provided through regulatory documents and policy explanations.
Singapore Digital Asset Licensing System
As of the date of writing, MAS has issued MPI licenses to 36 internationally-based institutions, covering the scope of Digital Payment Token Service (DPS) business.
In terms of the composition of licensed entities, although some institutions have US or other overseas backgrounds, or are controlled by multinational groups, they must all use locally registered legal entities as licensed entities when conducting relevant business in Singapore. The relevant compliance obligations, regulatory responsibilities, and business scope are all borne by the Singapore entity to the MAS in accordance with the Payment Services Act, reflecting Singapore's consistent regulatory principle of "local regulation and entity responsibility."
(a) MPI licensing/exemption status of global institutions
1. Licensing Status (List sorted by AZ)
2. Exemption Circumstances (List sorted by AZ)
3. Unique Business Development Situation
- In December 2025, Coinbase will launch its prediction market feature in the United States, but it will not be available to users in Singapore.
- In November 2024, Paxos Singapore and DBS Bank issued the US dollar stablecoin USDG.
(ii) Licensing/Exemption Status of Singapore Local Institutions from MPI
1. Licensing Status (List sorted by AZ)
2. Exemption Circumstances (List sorted by AZ)
3. Unique Business Development Situation
In December 2025, cryptocurrency platform Crypto.com announced a partnership with DBS Group, Singapore's largest bank, to enhance fiat currency payment capabilities, enabling local users to more easily access Singapore dollar and US dollar deposit and withdrawal services. That same month, StraitX announced plans to launch its Singapore dollar stablecoin XSGD (issued in 2020) and US dollar stablecoin XUSD on the Solana blockchain in early 2026.
- In November 2025, Grab and StraitsX developed a digital wallet that supports stablecoin payments.
- In September 2025, OKX Singapore launched stablecoin payment functionality for GrabPay merchants.
- In August 2025, DBS Bank Singapore launched tokenized structured notes on Ethereum. That same month, Volkswagen Singapore partnered with FOMO Pay to support digital currency payments.
At this point, we have outlined Singapore's regulatory framework, core laws, and licensing system for digital currencies, and also understood the composition of licensed institutions and the market structure. It's clear that Singapore is not simply "crypto-friendly," but rather has built a robust and attractive digital asset ecosystem through clear regulations and strict licensing management.
In the next article, we will delve deeper to explore how local financial institutions participate in digital asset practices, international cooperation and innovation trends, and the practical significance of Singapore's system for global institutions.
*The content of this article is for informational purposes only and does not constitute investment advice. Investing involves risk; please invest cautiously.
