Singapore Crypto Regulations—All You Need to Know in 2025
Learn about the compliance requirements and licensing procedures in Singapore's crypto industry in 2025.
Learn about the compliance requirements and licensing procedures in Singapore's crypto industry in 2025.
Singapore is at the forefront of cryptocurrency adoption in the Asia-Pacific region, securing approximately $627 million in funding for crypto companies across 88 deals in 2023.
The Monetary Authority of Singapore (MAS) has adopted a proactive regulatory stance, authorizing 19 cryptocurrency service providers as of January 2024. This includes major players like Crypto.com and Coinhako.
Singapore has a system for regulating crypto firms, known as “digital payment token (DPT) providers” in the country. Accordingly, the Payment Services Act 2019 (PS Act) establishes a regulatory framework for DPT service providers in Singapore.
To help you navigate Singapore’s crypto environment, we at Sumsub prepared this guide explaining the specifics of the country’s regulations.
Crypto is not considered legal tender in Singapore, but it can be used as an alternative means of payment (Legal tender refers to the officially recognized currency that can be used to settle debts and fulfill financial obligations within a country).
In Singapore, the legal tender is the Singapore Dollar (SGD), issued and regulated by the MAS.
The main law regulating crypto businesses is the PS Act. It was introduced in 2019 to provide a more coherent set of regulations, including rules for licensing and exemptions. We will discuss this part in detail in the following sections.
The MAS is continuously working to improve the regulatory framework of DPT services in the country, issuing several Notices and Guidelines aimed to clarify some regulatory requirements:
In Singapore, DPT services include:
DPT providers in Singapore must implement AML/CFT procedures and policies, including:
The MAS requires all providers of cryptocurrency to make sure the public understands the risks of crypto trading.
The MAS therefore prohibits the following marketing practices:
So long as the risks of trading in DPTs is not trivialized and the promotion is consistent with the risk disclosures required under the PS Act, DPT service providers are allowed to promote their services on their own through:
Additionally, DPT service providers shall develop and implement adequate internal policies, procedures, and controls to help prevent money laundering and terrorist financing and communicate these to their employees.
DPT service providers are required to develop appropriate compliance management arrangements, which at the least includes appointing an AML/CFT compliance officer at the management level.
DPT service providers are required to maintain an audit function that is adequately resourced, independent, and able to regularly assess the effectiveness of their internal policies, procedures, controls, and compliance with regulatory requirements.
DPT service providers should take all appropriate steps to ensure that their employees and officers (whether in Singapore or elsewhere) are regularly and appropriately trained on AML/CFT regulations, internal policies, procedures and controls on AML/CFT.
In 2024, the regulatory landscape for DPT service providers in Singapore underwent significant changes, primarily driven by amendments to the PS Act and the introduction of stricter compliance requirements.
Key developments in DPT licensing:
The regulatory changes in Singapore align with a global trend towards tighter AML/CFT compliance in the cryptocurrency sector. This is in response to increasing concerns about financial crimes facilitated by DPTs.
As part of their AML obligations, DPT service providers must comply with the Travel Rule as imposed by the MAS.
The Travel Rule requires DPT service providers to collect and share the information of clients when sending or receiving DPTs by value transfer on the account of an originator or beneficiary. Therefore, DPT service providers must provide originator and beneficiary data to each other during DPTs transactions.
If you want to learn more about the Travel Rule and how it’s applied in different counties, including Singapore, you can find all the necessary information at our Help Center.
The scope of information that originators are required to share with the beneficiary’s DPT service provider depends on the transaction amount. If the amount of transaction is less than SGD 1,500 (approximately USD 1,106), the DPT service provider should collect and share the following information:
If the transaction amount exceeds SGD 1,500, any of the following information may be required:
Navigating the complex regulatory landscape is essential for VASPs, requiring robust compliance solutions. To ensure smooth operations, crypto businesses need extensive connectivity, making it crucial to partner with a provider that supports a wide range of protocols and has an extensive network of VASPs.
Sumsub has the biggest connectivity on the market, with 5 protocols on board (CODE, GTR, TRP, Sumsub and Sygna).
Sumsub also offers a solution with over 1,700 VASPs in its ecosystem and supports more than 10,000 assets, providing comprehensive compliance tools to help service providers meet regulatory requirements efficiently.
Sumsub’s platform includes features for identity verification, transaction monitoring, AML screening, and regulatory reporting, allowing VASPs to comply with the Travel Rule and other mandates while maintaining a seamless user experience and operational efficiency. Additionally, Sumsub effectively manages the “sunrise” period and other challenges related to Travel Rule implementation across different jurisdictions.
The key benefits of Sumsub Travel Rule solution are:
There are three types of licenses a company can get in Singapore, depending on their business type:
There may be some additional authorization/recognition requirements in relation to businesses offering DPT.
For SPI, the following criteria apply:
The criteria for a MPI license are similar to those for SPIs, except that the minimum capital requirement is SGD 250,000 (approximately USD 184,000).
MPIs are also required to maintain a security deposit as a small buffer for the protection of customer money. MPIs who accept, process or execute payment transactions where the total value is SGD 6 million or less in a month in respect of each payment service are required to place a security deposit of SGD 100,000. Licensees that conduct higher volume transactions (above SGD 6 million) in respect of any payment service are required to place a security deposit of SGD 200,000.
There is a list of assessment criteria that MAS takes into consideration when evaluating an application for licenses. They include, but are not limited to:
You can read more about the differences in assessment criteria between each license here.
Yes, cryptocurrency is legal in Singapore and regulated under the Payment Services Act (PS Act).
DPT (or Digital Payment Token) in Singapore refers to cryptocurrencies and other digital assets regulated under the Payment Services Act.
Yes, the Monetary Authority of Singapore (MAS) regulates cryptocurrency service providers under the Payment Services Act and other relevant frameworks.