Cryptocurrency Regulations in Singapore – Comprehensive Insights for 2025
In Singapore, the regulatory framework for digital payment token (DPT) service providers has been strengthened significantly, with the Monetary Authority of Singapore (MAS) establishing strict Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) procedures.
The Payment Services Act 2019 (PS Act) serves as the foundation for this regulatory framework. In 2024, the PS Act was amended to include provisions for user protection and financial stability, and DPT service providers must now meet stricter licensing criteria.
All crypto service providers operating in or from Singapore, including exchanges, wallets, and others offering cross-border crypto services, must obtain a license from the MAS. This could be a Standard Payment Institution (SPI) or a Major Payment Institution (MPI) license, depending on transaction volume and operational scale.
Robust Know Your Customer (KYC) processes are a core requirement for providers to verify customer identities effectively. Continuous monitoring of transactions and reporting of suspicious activities to MAS are also mandatory, especially for transactions exceeding SGD 1,500.
The Travel Rule, which requires sharing originator and beneficiary information to enhance transparency and traceability, is also applicable to DPT service providers in Singapore. If the transaction amount is less than SGD 1,500, the DPT service provider should collect and share the following information: name, account number, and transaction amount. For transactions exceeding SGD 1,500, additional information may be required, such as the originator's residential address, registered or business address, and unique identification number, among others.
Cryptocurrency is not considered legal tender in Singapore, but it can be used as an alternative means of payment. The legal tender in Singapore is the Singapore Dollar (SGD), issued and regulated by the MAS.
DPT service providers are also required to develop appropriate compliance management arrangements, maintain an audit function, and ensure regular employee training on AML/CFT regulations. MPI licensees are also required to maintain a security deposit as a small buffer for the protection of customer money.
In September 2024, MAS revised guidelines to enhance consumer protection measures for DPT service providers, reflecting Singapore’s commitment to mitigating risks related to money laundering and terrorism financing in the crypto space, creating a more secure and transparent environment for digital asset activities.
As of January 2024, the MAS has authorized 19 cryptocurrency service providers, including Crypto.com and Coinhako. Singapore has also secured approximately $627 million in funding for crypto companies in 2023.
The MAS requires all providers of cryptocurrency to ensure the public understands the risks of crypto trading and prohibits certain marketing practices. Stablecoin issuers must be regulated under the PSA with strict solvency and consumer protection standards, with MAS-regulated stablecoins labeled specifically for higher trust.
Failure to obtain the mandatory license or comply with AML/CFT requirements can lead to severe penalties, including fines up to SGD 250,000 and imprisonment up to three years.
[1] Monetary Authority of Singapore. (2025). Guidelines on Digital Payment Token Services. Singapore: MAS. [2] Monetary Authority of Singapore. (2024). Revised Guidelines on Digital Payment Token Services. Singapore: MAS. [3] Monetary Authority of Singapore. (2022). Payment Services Act 2019. Singapore: MAS. [4] Monetary Authority of Singapore. (2021). Financial Services and Markets Act 2022. Singapore: MAS.
- The regulatory framework for digital payment token (DPT) service providers in Singapore is stringent, encompassing provisions for user protection and financial stability as stated in the amended Payment Services Act (PS Act) of 2024.
- Meeting the stricter licensing criteria, all crypto service providers in Singapore, such as exchanges and wallets, are mandated to obtain a license from the Monetary Authority of Singapore (MAS), whether it be a Standard Payment Institution (SPI) or Major Payment Institution (MPI) license.
