## What Is the MAS Crypto Licensing Framework?
The Monetary Authority of Singapore (MAS) regulates digital payment token (DPT) services under the Payment Services Act 2019 (PS Act), which was significantly amended in 2024 to expand the scope of regulated activities. A Digital Payment Token service provider is any entity that buys, sells, facilitates the exchange of, or transmits DPTs — including cryptocurrencies such as Bitcoin and Ether — in the course of business in Singapore. As of February 2026, MAS has granted full Major Payment Institution (MPI) licenses to approximately 30 DPT service providers, while over 60 entities hold Standard Payment Institution (SPI) licenses, making Singapore one of the most active licensing jurisdictions in Asia-Pacific.
## Which License Tier Does Your Crypto Business Need?
The PS Act establishes two primary license tiers for DPT service providers. An entity qualifies as a Standard Payment Institution if its monthly DPT transaction volume does not exceed SGD 3 million and its average daily float does not exceed SGD 5 million. Any business exceeding either threshold must apply for a Major Payment Institution license. The MPI license imposes substantially higher capital requirements, more rigorous ongoing reporting obligations, and stricter technology risk management standards. Both tiers are subject to identical anti-money laundering requirements under MAS Notice PSN02.
| License Feature | Standard Payment Institution (SPI) | Major Payment Institution (MPI) |
|---|---|---|
| Monthly DPT Transaction Volume | Up to SGD 3 million | Exceeds SGD 3 million |
| Average Daily Float | Up to SGD 5 million | Exceeds SGD 5 million |
| Base Capital Requirement | SGD 100,000 | SGD 250,000 |
| Safeguarding Obligation | Not required | Required for customer funds |
| Technology Risk Guidelines | Basic | Full MAS TRM Guidelines |
| Annual Licence Fee | SGD 1,000 | SGD 5,000 |
## What Are the Core AML/CFT Requirements Under MAS Notice PSN02?
MAS Notice PSN02 establishes the anti-money laundering framework that all DPT service providers must implement. Licensees must conduct comprehensive customer due diligence (CDD) for all customers, with enhanced due diligence (EDD) mandatory for politically exposed persons (PEPs), customers from higher-risk jurisdictions, and flagged transactions. Ongoing monitoring of transactions is non-negotiable — licensees must implement automated transaction monitoring systems. Suspicious transaction reports (STRs) must be filed with the Suspicious Transaction Reporting Office (STRO) within one business day. Record retention requirements mandate that all CDD documentation and transaction records be retained for a minimum of five years.
## How Does the FATF Travel Rule Apply to Singapore DPT Businesses?
Singapore implemented the FATF Travel Rule through MAS Notice PSN02B, requiring DPT service providers to collect, verify, and transmit originator and beneficiary information for all DPT transfers above SGD 1,500 (approximately USD 1,100). Originator information includes the customer's full legal name, account number or wallet address, and physical address or national identity number. MAS has acknowledged the sunrise issue where counterparty VASPs may not yet be Travel Rule compliant and has issued guidance permitting a risk-based approach during the transition period.
## What Did the 2024 PS Act Amendments Change?
The 2024 amendments represented the most significant expansion of Singapore's DPT regulatory perimeter since the PS Act's enactment. The amendments extended MAS's regulatory reach to DPT service providers that operate from Singapore but serve customers located entirely outside the country. The revised framework introduced requirements for DPT service providers to hold customer assets in a segregated trust structure, prohibiting commingling of customer funds with the licensee's own assets.
| Amendment Area | Pre-2024 Requirement | Post-2024 Requirement |
|---|---|---|
| Geographic Scope | Singapore-based customers only | Includes overseas customers served from Singapore |
| Customer Asset Custody | No mandatory segregation | Mandatory trust account segregation for MPIs |
| DPT Custody Services | Unregulated | Regulated as a distinct DPT service |
| Stablecoin Issuance | No specific framework | New Single-Currency Stablecoin (SCS) regime |
| Consumer Protection Rules | Minimal | Explicit restrictions on retail customer marketing |
## What Is the MAS Stablecoin Framework?
MAS finalised its regulatory framework for single-currency stablecoins (SCS) pegged to the Singapore Dollar or any G10 currency, with the framework becoming enforceable following the 2024 PS Act amendments. Issuers with total circulation value exceeding SGD 5 million must hold reserve assets equivalent to the par value of stablecoins in circulation at all times. Reserve assets must be denominated in the same currency as the pegged currency and held in cash, cash equivalents, or short-duration sovereign debt instruments. Monthly independent audits of reserve adequacy are required.
## How Long Does the MAS DPT Licensing Process Take?
MAS's published indicative processing time is six months from the receipt of a complete application, though complex applications routinely take nine to twelve months. As of February 2026, MAS has received over 380 DPT service provider applications since the PS Act's enactment, approving approximately 90, rejecting or withdrawing over 200, and maintaining approximately 90 in active review. Pre-application engagement with MAS through the regulatory sandbox is strongly encouraged.
## What Enforcement Actions Has MAS Taken Against DPT Providers?
In 2024, MAS imposed financial penalties totaling over SGD 12 million across six separate enforcement actions against DPT service providers, with violations spanning inadequate customer due diligence, failure to file STRs, and non-compliance with the Travel Rule. MAS also maintains a public Investor Alert List naming unlicensed entities soliciting DPT business from Singapore residents — as of February 2026 the list contains over 900 entities.
## How Can Defy Help Your Business Achieve MAS Compliance?
Defy provides a comprehensive compliance platform designed specifically for DPT service providers operating under the PS Act framework, covering real-time transaction screening against global sanctions and adverse media databases, automated Travel Rule data collection and transmission, blockchain forensics for on-chain risk assessment, and case management tools that generate MAS-compatible suspicious transaction report documentation. Contact Defy at [getdefy.co](https://getdefy.co/contact) to schedule a compliance consultation.