Regulatory AlertsSingapore: crypto & digital assets regulation
RegulatedMAS regulates DPTs under PSN02; securities laws apply to tokenised capital products
- Lead regulator
- Monetary Authority of Singapore
- Also involved
- Securities and Futures Act (securities tokens) · PDPA (data privacy)
- Core law
- Payment Services Act 2019
- Entry capital
- SGD 500,000 (Standard Payment Institution)
- Approval timeline
- 3-6 months
- Customer assets
- Segregated from operator funds
- Data protection
- Personal Data Protection Act 2012 · PDPC
- Sandbox
- Yes - Regulatory Sandbox
Singapore regulates digital payment tokens (DPTs) under the Payment Services Act (PSA), overseen by the Monetary Authority of Singapore (MAS). The regime distinguishes between Standard and Major Payment Institutions based on transaction volumes. Tokenised capital markets products fall under securities laws, requiring prospectus compliance. MAS enforces strict AML/CFT standards via Notice PSN02 and prohibits public advertising of DPT services.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Exchange / trading platform | LicenceStandard/Major Payment Institution[1][2] Requires AML/CFT compliance under PSN02 | SGD 500,000 (Standard) | 3-6 months | MAS |
| Custody of client assets | LicenceStandard/Major Payment Institution[1] Custody of DPTs falls under PSA licensing | SGD 500,000 (Standard) | 3-6 months | MAS |
| Token issuance / public offering | LicenceCapital Markets Services (if security)[3] Prospectus required if tokenised capital product | — | — | MAS |
| Broker-dealer / OTC desk | LicenceCapital Markets Services[3] Required for dealing in securities tokens | — | — | MAS |
| Stablecoin issuance | Uncertainverify with regulator Specific stablecoin regime not detailed in sources | — | — | — |
| Crypto payments acceptance | LicenceStandard/Major Payment Institution[1] DPT payment services require PSA license | SGD 500,000 (Standard) | 3-6 months | MAS |
| Mining / staking services | Uncertainverify with regulator Not explicitly covered in provided documents | — | — | — |
| Advisory / portfolio management | Uncertainverify with regulator Advisory on DPTs not explicitly detailed | — | — | — |
New — what changed recently
- 2025-06-30Notice PSN02 — Imposed comprehensive AML/CFT requirements on DPT service providers[1]
- 2025-06-30Guidelines to Notice PSN02 — Specified AML/CFT operational requirements for DPT providers[2]
- 2025-11-14Guide on Tokenisation of Capital Markets Products — Clarified application of securities laws to tokenised products[3]
Market-entry checklist
- 1Apply for PSA LicenseSubmit application to MAS for Standard or Major Payment Institution status.
- 2Implement AML/CFT ControlsEstablish robust KYC and transaction monitoring per Notice PSN02.
- 3Segregate Customer AssetsEnsure client funds and tokens are held separately from operator funds.
- 4Comply with Advertising BanProhibit public promotion of DPT services in Singapore per MAS guidelines.
- 5Assess Securities StatusDetermine if tokens constitute capital markets products requiring prospectus.
Sources
- MAS Notice PSN02 Prevention of Money Laundering and Countering the Financing of Terrorism – Digital Payment Token Service · 2024-04-02
- Guidelines to Notice PSN02 on Prevention of Money Laundering and Countering the Financing of Terrorism - Digital Payment Token Service · 2024-04-02
- Guide on the Tokenisation of Capital Markets Products · 2025-11-14