Singapore has emerged as a leading hub for cryptocurrency innovation in the Asia-Pacific region, attracting over $627 million in funding across 88 deals in 2023 alone. As digital assets gain mainstream traction, the Monetary Authority of Singapore (MAS) continues to refine its regulatory framework to balance innovation with consumer protection and financial integrity. For businesses and investors navigating this evolving landscape, understanding Singapore’s crypto regulations in 2025 is essential.
This guide provides a comprehensive overview of the regulatory environment, compliance obligations, licensing pathways, and key updates shaping the future of digital payment tokens (DPTs) in Singapore.
Understanding Cryptocurrency Legality in Singapore
Cryptocurrency is legal in Singapore but is not recognized as legal tender. The official currency remains the Singapore Dollar (SGD), issued and regulated by the MAS. However, digital payment tokens (DPTs)—the regulatory term for cryptocurrencies—are permitted as an alternative means of payment under strict oversight.
The Payment Services Act 2019 (PS Act) forms the backbone of crypto regulation in Singapore. It classifies DPT service providers and mandates licensing, anti-money laundering (AML), and counter-terrorism financing (CFT) compliance. This legal clarity has positioned Singapore as a trusted jurisdiction for blockchain startups and global crypto firms.
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Who Regulates Cryptocurrency in Singapore?
The Monetary Authority of Singapore (MAS) is the primary regulator overseeing all DPT-related activities. Since 2019, the PS Act has provided a structured framework for licensing and supervising crypto businesses. As of early 2025, MAS has authorized 19 DPT service providers, including major players like Crypto.com and Coinhako.
MAS enforces compliance through several key regulatory instruments:
- Notice PSN02: Outlines AML/CFT obligations for DPT service providers.
- Guidelines to Notice PSN02: Clarifies implementation requirements for risk assessment and due diligence.
- PS-G02 Guidelines: Governs how DPT services can be offered to the public, including marketing restrictions.
These frameworks ensure that only credible, well-governed entities operate within Singapore’s financial ecosystem.
Which Activities Require Licensing?
Under the PS Act, a business must be licensed if it engages in any of the following DPT services:
- Buying or selling cryptocurrencies
- Operating a platform for DPT exchange
- Transmitting or arranging transmission of DPTs
- Providing custodial wallet services
- Facilitating DPT trades without holding funds or tokens
Even decentralized platforms or peer-to-peer services may fall under regulatory scrutiny if they actively facilitate transactions.
Key Compliance Requirements
All licensed DPT providers must adhere to stringent operational and compliance standards:
Anti-Money Laundering (AML) & CFT Measures
- Conduct risk assessments to identify ML/TF vulnerabilities.
- Implement Customer Due Diligence (CDD) during onboarding.
- Apply Enhanced Due Diligence (EDD) for high-risk clients.
- Use Simplified Due Diligence (SDD) where risk is low and justified.
- Monitor transactions for suspicious patterns.
- Screen customers against global sanctions, PEPs, and adverse media lists.
- Report suspicious activities to authorities promptly.
- Maintain records for at least five years.
Travel Rule Compliance
The FATF-mandated Travel Rule requires DPT providers to share originator and beneficiary information during transactions above SGD 1,500 (~USD 1,106). Required data includes names, account numbers, addresses, and identification details. Below this threshold, minimal identifying information suffices.
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Marketing Restrictions for Crypto Services
To protect retail investors, MAS imposes strict limits on public promotion of DPTs:
Prohibited practices include:
- Advertising in public spaces (e.g., transit systems, billboards)
- Using broadcast media, newspapers, or public events
- Engaging influencers or third-party platforms for promotions
- Presenting crypto trading as low-risk or trivializing volatility
Permitted channels:
- Corporate websites
- Mobile apps
- Official social media accounts
All marketing must include clear risk disclosures about price volatility, loss potential, and lack of government backing.
Licensing Framework: SPI vs MPI
Businesses must choose between two main licenses based on transaction volume:
Standard Payment Institution (SPI)
Suitable for smaller operations with monthly transaction thresholds:
- Up to SGD 3 million per payment service
- Up to SGD 6 million for two or more services
- Daily e-money outstanding up to SGD 5 million
Requirements:
- Minimum base capital: SGD 100,000
- At least one executive director who is a Singapore citizen, PR, or Employment Pass holder
- Robust risk management systems
Major Payment Institution (MPI)
For larger-scale operations exceeding SPI thresholds.
Requirements:
- Minimum base capital: SGD 250,000
- Security deposit: SGD 100,000 (up to SGD 6M/month) or SGD 200,000 (above)
- Strong governance, audit functions, and technology risk controls
MAS evaluates applications based on governance, fitness of directors, capital adequacy, cybersecurity, and compliance infrastructure.
Recent Regulatory Updates (2024–2025)
The regulatory landscape evolved significantly in 2024 with amendments to the PS Act:
- Expanded scope: Now includes custodial services, cross-border transfers, and DPT derivatives.
- Stricter capital rules: Reinforced financial resilience requirements.
- Enhanced consumer protection: New guidelines (PS-G03) mandate conflict-of-interest disclosures, fair business conduct, and transparent access policies.
These changes reflect a global trend toward tighter oversight amid rising concerns about financial crime and investor risks in crypto markets.
Frequently Asked Questions
Is cryptocurrency legal in Singapore?
Yes. Cryptocurrency is legal and regulated under the Payment Services Act. While not legal tender, it can be used as a payment method by private parties.
What is a DPT in Singapore?
A Digital Payment Token (DPT) refers to cryptocurrencies like Bitcoin or Ethereum that are used as a medium of exchange. They are regulated under the PS Act when bought, sold, or exchanged.
Does MAS regulate cryptocurrency?
Yes. The Monetary Authority of Singapore oversees all DPT service providers through licensing, AML/CFT enforcement, and market conduct rules.
Can foreign companies operate crypto services in Singapore?
Yes, but they must establish a local presence—either as a Singapore-incorporated entity or a registered branch—and meet all licensing criteria.
What happens if a company operates without a license?
Unlicensed operation is illegal. MAS can impose fines, revoke approvals, or pursue criminal charges under the PS Act.
How long does it take to get a DPT license?
The process typically takes 6 to 12 months, depending on application completeness, due diligence depth, and MAS review timelines.
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Final Thoughts
Singapore’s approach to crypto regulation in 2025 combines innovation-friendly policies with rigorous safeguards. By enforcing clear licensing rules, marketing restrictions, and robust AML/CFT protocols—including full Travel Rule compliance—the MAS ensures that the digital asset ecosystem remains secure and trustworthy.
For businesses aiming to enter or scale in this market, early preparation, strong governance, and investment in compliance technology are critical. As global regulators align with FATF standards, Singapore continues to set a benchmark for balanced, forward-looking crypto policy.
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