Global Crypto Institutions' "First Choice for Going Global": Singapore Regulatory Insights (Part 1)

Under the wave of global digital currency development, Singapore is becoming an “outbound hub” for international crypto institutions. Whether it’s stablecoin issuance, digital asset trading, or institutional-level custody and payment clearing, global fintech companies are seeking compliant and stable pathways here.

Behind this is the systematic regulatory framework established by the Monetary Authority of Singapore (MAS): clear legal structures, comprehensive licensing systems, and a risk- and innovation-friendly supervisory philosophy, making Singapore stand out among major jurisdictions worldwide. Unlike the fragmented US regulatory environment or the high compliance costs in Europe, Singapore offers predictable and actionable compliance pathways.

This series of reports will systematically interpret Singapore’s digital asset ecosystem from five dimensions: regulatory framework, licensed institutions, financial industry practices, international cooperation, and institutional advantages. It will help you understand how its system attracts global institutions and provide references for the Asia-Pacific and global markets.

Regulatory Framework and Main Licensing Systems

(1) Core Regulatory Authority

The Monetary Authority of Singapore (MAS) is the unified regulator for Singapore’s digital assets and financial markets, overseeing payment systems, digital currencies, fintech, and related financial services. MAS implements a management model combining legislation and licensing, applying both functional regulation and risk-based supervision for digital asset activities.

(2) Regulatory Laws and Overall Framework

1. Payment Services Act (PSA)

The PSA is the foundational legal framework for Singapore’s digital asset regulation. It defines digital currencies/cryptocurrencies as “Digital Payment Tokens (DPTs)” and incorporates related services such as payments, exchanges, transfers, and custody into the payment service regulatory system.

The Act clarifies key requirements:

• Digital Payment Token services must be licensed;
• Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) obligations are established;
• Standards for capital adequacy, customer asset segregation, and risk management are specified;
• Continuous supervision ensures financial stability and consumer protection.

2. Financial Services and Markets Act (FSMA)

Building on the PSA, FSMA expands Singapore’s regulation of digital asset activities. Unlike the PSA, which mainly targets services provided to local customers, FSMA’s scope extends to all entities registered or operating in Singapore that conduct digital asset-related business, even if their clients are overseas. Specifically, any entity engaging in issuance, trading, matching, custody, or related services through a Singapore entity is within FSMA’s regulatory scope.

Effective from 2025, MAS explicitly requires entities established in Singapore but serving only offshore clients to obtain the relevant license within a specified period; failure to do so may result in hefty fines or criminal liability, closing regulatory gaps for offshore channels.

(3) License Types and Regulatory Responsibilities

Currently, Singapore’s core licenses for the crypto sector include the DPT license under the PSA and the DTSP (Digital Token Service Provider) license.

1. DPT License under the PSA

Under the PSA, entities involved in digital payments, remittances, e-money, or cryptocurrency services must hold one of the following licenses:

(1) Standard Payment Institution (SPI) license — for smaller-scale payment service providers;

(2) Major Payment Institution (MPI) license — for larger-scale, cross-border, or digital asset service providers.

It’s important to note that only MPI licensees are permitted to conduct DPT-related activities; SPI licensees have not yet been granted this permission.

Therefore, the industry often refers to the “DPT license” as an MPI license that includes digital payment token services.

2. DTSP License (Digital Token Service Provider)

According to FSMA, entities without a DTSP license are prohibited from providing any digital token-related services through their Singapore operations to overseas clients. The DTSP license mainly targets “external service” digital asset institutions, with broader scope and stricter compliance requirements than the DPT system.

Following the implementation of the DTSP regulation, Singapore has systematically cleaned up crypto companies that only have a “local entity but lack substantive operations.” Except for a few with genuine business and compliance capabilities, most non-compliant firms must cease related activities or relocate their entities out of Singapore by June 30, 2025, effectively resulting in a regulatory clearance.

Industry analysts suggest that if an institution is already under the following frameworks, it generally does not need to apply separately for a DTSP license:

(1) Holding a license under the PSA;

(2) Having an exemption under the PSA;

(3) Holding licenses under the Securities and Futures Act or the Financial Advisers Act.

It should be noted that most media reports referring to “DTSP licensees” correspond to “MPI licensees with digital payment token services” in MAS’s public information, rather than a separate DTSP license holder.

As of now, MAS has not publicly released a complete list of DTSP licensees; relevant information is mainly available through regulatory documents and policy statements.

Singapore’s Digital Asset Licensing System

As of the writing date, MAS has issued MPI licenses with digital payment token service scope to 36 institutions with international backgrounds.

Regarding license holders, some entities have US or other overseas backgrounds or are controlled by multinational groups, but when conducting relevant business in Singapore, they must register a local legal entity as the license holder. All compliance obligations, regulatory responsibilities, and business scope are borne by this Singaporean entity under the PSA, reflecting Singapore’s principle of “territorial regulation and responsible entities.”

(1) Global Institutions with MPI Licenses / Exemptions

1. License Holders (A-Z list)

2. Exempted Entities (A-Z list)

3. Notable Market Activities

• December 2025: Coinbase launches prediction markets in the US; Singapore users are not eligible.
• November 2024: Paxos Singapore and DBS Bank issue USDG stablecoin.

(2) Local Singaporean Institutions with MPI Licenses / Exemptions

1. License Holders (A-Z list)

2. Exempted Entities (A-Z list)

3. Notable Market Activities

• December 2025: Crypto.com announces partnership with DBS to enhance fiat payment functions, allowing local users to deposit and withdraw in SGD and USD. In the same month, StraitX plans to launch its Singapore dollar stablecoin XSGD (issued in 2020) and USD stablecoin XUSD on the Solana blockchain.
• November 2025: Grab and StraitX develop digital wallets supporting stablecoin payments.
• September 2025: OKX Singapore launches stablecoin payment features for GrabPay merchants.
• August 2025: DBS Singapore launches tokenized structured notes on Ethereum. In the same month, Volkswagen Singapore partners with FOMO Pay to support digital currency payments.

Having outlined the regulatory framework, core laws, and licensing system for Singapore’s digital currency sector, and understanding the composition and market structure of licensed institutions, it’s clear that Singapore is not simply “crypto-friendly.” Instead, it has built a robust and attractive digital asset ecosystem through clear regulations and strict licensing management.

In the next article, we will delve deeper into 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.

This article is for informational purposes only and does not constitute investment advice. Markets are risky; invest cautiously.