Singapore becomes a crypto regulation hub! MAS issues 36 payment licenses sparking a rush to enter the market

Singapore’s Monetary Authority (MAS) has issued 36 MPI licenses, allowing Coinbase and Binance to operate under licensing. The Payment Services Act (PSA) defines DPT, and the Financial Services and Markets Act (FSMA), which takes effect in 2025, extends regulation to offshore services. The new DTSP policy has triggered a cleanup, with non-compliant companies ceasing operations before June 30. Singapore offers a clear regulatory framework, contrasting with the fragmented approaches in the US and Europe.

Analysis of MAS’s Dual Regulatory System

The Monetary Authority of Singapore (MAS) is the unified regulator for digital assets and financial markets in Singapore, overseeing payment systems, digital currencies, fintech, and related financial services. MAS employs a combined legislative and licensing approach, implementing a management model that enforces functional regulation and risk-based supervision simultaneously. This unified regulatory model avoids the overlapping authority issues seen with the US SEC and CFTC and is more efficient than the fragmented regulation across multiple European countries.

The Payment Services Act (PSA) is the foundational legal framework for cryptocurrency regulation in Singapore. It defines digital currencies as “Digital Payment Tokens (DPTs)” and incorporates related services such as payments, exchanges, transfers, and custody into the payment services regulatory system. The act establishes core requirements: digital payment token services must be licensed; anti-money laundering (AML) and counter-terrorism financing (CFT) obligations are mandated; standards for capital adequacy, customer asset segregation, and risk management are clarified; and ongoing supervision ensures financial stability and consumer protection.

Building on the PSA, the Financial Services and Markets Act (FSMA) further expands Singapore’s regulation scope over digital asset activities. Unlike the PSA, which mainly targets “services provided to local Singaporean customers,” FSMA’s regulation extends to all entities registered or operating in Singapore that conduct digital asset-related business, even if their clients are offshore.

Singapore’s Cryptocurrency Licensing System

MPI License: Major payment institution, capable of conducting DPT business, suitable for large exchanges

SPI License: Standard payment institution, smaller scale, currently unable to conduct DPT

DTSP License: Digital token service provider for offshore services, mandatory from 2025

The law takes effect in 2025, with MAS explicitly requiring that any entity with a physical presence in Singapore but only serving offshore clients must obtain the appropriate license within the specified timeframe. Failure to do so will result in hefty fines or criminal liability, closing regulatory gaps that could be exploited via Singapore as an “offshore conduit.” This regulatory upgrade has sparked a 2025 cleanup wave, forcing many shell companies without substantive operations to exit.

36 Licensed Entities and Global Major Players

As of now, MAS has granted MPI licenses to 36 internationally active institutions, including digital payment token services. Many licensees have US or other offshore backgrounds or are controlled by multinational groups, but all conducting Singapore-based operations must register a local legal entity as the license holder. The compliance obligations, supervisory responsibilities, and scope of business are borne by this Singapore entity under the PSA.

Global top exchanges like Coinbase, Binance, OKX, Kraken are on the license list, indicating Singapore has become a core hub for the crypto industry. Reasons include a clear and predictable regulatory framework, government openness to innovation, robust financial infrastructure, and strategic geographic location in Asia-Pacific. Unlike Hong Kong’s aggressive expansion or Dubai’s liberalization, Singapore adopts a “selective openness” approach, allowing only high-standard institutions to enter.

In December 2025, Crypto.com announced a partnership with DBS, Singapore’s largest bank, to enhance fiat payment functions, enabling local users to deposit and withdraw in SGD and USD more conveniently. In the same month, StraitX announced plans to launch its Singapore dollar stablecoin XSGD and USD stablecoin XUSD on the Solana blockchain in early 2026. In November 2025, Grab and StraitsX developed digital wallets supporting stablecoin payments. In September 2025, OKX Singapore launched stablecoin payment features for GrabPay merchants.

These innovations demonstrate that Singapore’s crypto regulation is not just about licensing but actively promoting real-world application scenarios. DBS’s collaboration with Crypto.com and Paxos signifies deep integration between traditional finance and the crypto industry. Grab, Southeast Asia’s largest super app, integrating stablecoin payments, could introduce millions of users to cryptocurrencies for the first time.

Global Lessons from the Singapore Model

Singapore stands out among major jurisdictions worldwide. Unlike the fragmented US regulation or the high compliance costs in Europe, Singapore offers a predictable, actionable compliance pathway. Its systematic regulatory system includes clear legal frameworks, comprehensive licensing regimes, and a balanced approach to risk and innovation.

Singapore is not simply “crypto-friendly,” but has built a resilient and attractive digital asset ecosystem through transparent policies and strict licensing management. The DTSP policy’s cleanup has eliminated shell companies lacking substantive operations, leaving only top-tier firms with genuine capabilities and compliance standards. This “strict entry, strict regulation” strategy enhances overall market quality and protects investors in the long run.

For global crypto firms, Singapore offers more than just licenses; it provides a complete ecosystem: a sound banking system (DBS, OCBC), a developed fintech industry (Grab), political stability, and a strategic position connecting East and West. These advantages make Singapore a “preferred offshore destination,” especially for institutions aiming to serve both Asian and global markets.