10th August 2026
By Shubhii Verma
Singapore has approved licenses for only 37 digital payment token (DPT) service providers out of nearly 300 applications received since its cryptocurrency licensing framework came into effect in 2020, highlighting the city-state’s rigorous approach to regulating the digital asset industry.
The figures were disclosed by Monetary Authority of Singapore (MAS) Chairman Gan Kim Yong in a parliamentary response addressing the risks and regulatory safeguards surrounding virtual asset service providers.
How Singapore Regulates Crypto Firms Under the Payment Services Act
In Singapore, companies offering cryptocurrency-related services are regulated as Digital Payment Token Service Providers (DPTSPs) under the country’s Payment Services Act. Businesses operating in this sector must obtain a licence from MAS and demonstrate that they have robust systems for managing operational, compliance, anti-money laundering (AML), and counter-terrorism financing (CTF) risks before they are permitted to offer services.
Why Most Singapore Crypto Licence Applications Failed
According to Gan, the majority of applications submitted since 2020 were either rejected by MAS or voluntarily withdrawn by applicants after they concluded they were unable to satisfy the regulator’s stringent licensing standards.
Singapore has earned a reputation as one of Asia’s most tightly regulated digital asset markets, prioritising financial stability and consumer protection over rapid industry expansion. Rather than issuing licences broadly, MAS has focused on approving firms that can meet high standards of governance, risk management, cybersecurity, and compliance.
Licensed Crypto Firms Face Ongoing MAS Supervision
The regulator also continues to supervise licensed crypto firms after approval. MAS has taken enforcement actions against companies that failed to maintain the required regulatory standards, underscoring that obtaining a licence is only the first step in operating within Singapore’s digital asset ecosystem.
Beyond licensing, MAS actively monitors emerging financial crime risks linked to cryptocurrencies and regularly updates its regulatory framework to address new threats. The regulator’s oversight has been recognised internationally, with the Financial Action Task Force (FATF) acknowledging Singapore’s effectiveness in supervising digital payment token service providers and implementing measures to combat money laundering and terrorist financing.
What Singapore’s Strict Crypto Rules Mean for the Industry
The latest figures illustrate the challenges crypto companies face in entering Singapore’s regulated market. While the country remains an attractive hub for blockchain innovation and institutional digital asset businesses, its licensing process is designed to admit only firms that can demonstrate long-term operational resilience and full compliance with regulatory expectations.
As global regulators continue tightening oversight of the crypto sector, Singapore’s selective licensing approach is increasingly viewed as a model that balances innovation with investor protection and financial integrity.
