20th july 2026
By Anjali kochhar
MAS Conducts Supervisory Review of Licensed Crypto Firms
Singapore’s ambition to become a global digital asset powerhouse has always rested on a simple promise: innovation is welcome, but only if it comes with accountability. That promise is now being reinforced as the Monetary Authority of Singapore (MAS) turns its attention from licensing crypto firms to testing whether they are actually living up to the standards expected of one of the world’s most tightly regulated financial hubs.
In its latest supervisory review, MAS uncovered several anti-money laundering (AML) and counter-terrorism financing (CFT) weaknesses among licensed Digital Payment Token (DPT) service providers. The findings do not suggest widespread misconduct, but they reveal a more concerning issue: many firms have compliance frameworks on paper, yet struggle to execute them effectively in day-to-day operations.
One of the biggest concerns identified by the regulator was inadequate customer due diligence. MAS found that some crypto firms accepted customer declarations about the source of their wealth and funds without independently verifying the information, particularly for higher-risk clients. In an industry where transactions can cross borders in seconds, regulators believe assumptions are becoming an unacceptable risk.
Transaction Monitoring and Risk Oversight Gaps
The review also highlighted gaps in transaction monitoring. Although several firms deployed blockchain analytics platforms capable of flagging suspicious activity, MAS observed that alerts were not always investigated thoroughly. In some cases, unusual transfers passed through without sufficient scrutiny, raising concerns that technology alone cannot replace strong compliance teams and clear internal processes.
Another focus was the listing of new crypto tokens. MAS noted that some firms lacked comprehensive risk assessments before offering new digital assets to customers. Without evaluating whether a token could expose the platform to money laundering or financial crime, companies risk introducing vulnerabilities into their own ecosystems.
Compliance with the international Crypto Travel Rule also emerged as an area requiring improvement. The regulator found that some firms failed to consistently collect and verify information about both the sender and recipient of digital asset transfers. Others could not demonstrate that the sanctions screening databases they relied on were comprehensive enough to detect prohibited entities or high-risk transactions.
MAS further emphasised that transfers involving self-hosted wallets and unregulated virtual asset service providers deserve enhanced scrutiny due to their elevated financial crime risks.
The review reflects a broader shift in Singapore’s regulatory philosophy. The conversation is no longer about attracting crypto companies it is about ensuring only the most resilient and responsible businesses thrive. As jurisdictions worldwide tighten oversight following years of rapid crypto expansion, Singapore appears determined to distinguish itself not through lighter regulation, but through stronger enforcement.
Singapore’s Regulatory Philosophy Shifts Toward Enforcement
For the digital asset industry, the regulator’s message is unmistakable: the era of compliance as a routine checklist is over. In tomorrow’s crypto economy, trust will be be measured less by ambitious roadmaps or technological breakthroughs and more by the ability to detect risks before they become headlines. Singapore is making one thing clear: the future of crypto belongs not just to those who innovate first, but to those who can prove they deserve the world’s confidence.
