In 2025, the regulatory environment of cryptocurrency businesses in Singapore has significantly changed. The Monetary Authority of Singapore (MAS) has recently introduced a requirement that every Digital Token Service Provider (DTSP) should obtain a license, regardless of where its clients are based. This necessity has significant implications on token launches and Web3 businesses.

C-level executives considering the token sales in Singapore should have an in-depth knowledge of the new regulatory framework. On June 30, 2025, the licensing regime of Digital Token Services Provider (DTSP) was introduced without a transitional period. Therefore, organisations have to meet high standards of compliance or shut down completely.

This guide provides strategic advice to Web3 executives who need to understand Singapore crypto regulations that have changed. It examines the requirements to be licensed, the process of application, and frameworks to be compliant with to launch tokens successfully.

Understanding Singapore's New DTSP Framework

1. The Regulatory Shift

The Financial Services and Markets Act 2022 has brought the Digital Token Service Provider (DTSP) framework, which is a significant step in the evolution of the regulation of crypto-related activities. Before the legislation was passed, providers were able to get around the licensing requirements by only providing services to offshore customers. This regulatory loophole has been closed now and the new provisions cover two major types of entities.

• Partnerships or individuals that reside in Singapore

• Digital token service providers incorporated in Singapore

A wide range of activities are covered by the term digital token services under the supervision of MAS, such as the exchanges of tokens, the custody of tokens, and the processing of payments. This includes the majority of the launch-related activities that Web3 ventures perform.

To give a detailed explanation of the procedure of token launch, we suggest reading our article entitled How to Successfully Launch a Token.

2. Why MAS Tightened Regulations

The trend towards stricter regulation is supposed to deal with tangible concerns over money-laundering threats and regulatory arbitrage. The Monetary Authority of Singapore (MAS) has already admitted that crypto businesses that are offshore-oriented are exposed to a greater risk of money-laundering due to their lesser monitoring capacities.

A number of high-profile collapses in the recent past, such as that of Three Arrows Capital (3AC) and Terraform Labs, have demonstrated that the prior regulatory regime had major weaknesses in Singapore. The new regulatory regime is thus aimed at averting such incidences and maintaining Singapore's reputation as a well regulated financial hub.

Advantages of Singapore Crypto License

Obtaining a cryptocurrency license in Singapore has a number of benefits:

• Reputation and credibility: Singapore is a huge financial hub that is recognised and respected worldwide. Obtaining license in this jurisdiction improves the image of your cryptocurrency company and instills confidence in the customers and partners.

• Regulation and transparency: Singapore regulates companies that deal with cryptocurrency to make transactions legal and transparent. The national regulator gives clear guidelines and regulations to be used in complying with the relevant regulatory requirements.

• Good business environment and innovation: Good economy, efficient infrastructure, support and development of technology and innovation, including blockchain and cryptocurrencies, makes Singapore a good location to conduct cryptocurrency business.

• Cost Efficiency: Tax at low rates, zero VAT on cryptocurrencies, and tax on offshore profits at 0 percent.

• Access to international markets: Singapore has access to international markets due to being an international financial center. In contrast, Singapore is quite active in collaboration with other countries and regulators in the cryptocurrency and fintech sphere. This creates more opportunities to increase your operations and forge alliances.

It is necessary to note, however, that in order to acquire a cryptocurrency license in Singapore, one will need to fulfill some requirements and standards, and complete the registration and compliance evaluation procedure.

Types of Crypto Licenses in Singapore

According to the Payment Services Act (PSA) 2019, Singapore businesses transacting in digital payment tokens (DPT) including cryptocurrencies are required to obtain a license. The PSA establishes what activities the licensed companies can engage in and the regulations that guide them.

1. Permissible Activities

The services that can be offered by the licensed companies include the following:

• Trading cryptocurrencies: Purchasing, selling and trading digital assets (DPT).

• Running crypto trading platforms: Establishing crypto trading platforms.

• Transmission of digital payment tokens: Processing of DPT transactions among users.

• Custodial services: custody (custodial wallet services) of cryptocurrencies.

• Crypto-asset financial transactions: Providing payment infrastructure to crypto-assets.

• Cryptocurrency settlement: Using crypto as settlement.

2. Licensing Options

The companies will have to acquire one of the two principal types of licenses:

Standard Payment Institution (SPI)

Main Features:

• May offer services to pay with digital payment tokens, such as the purchase, sale, exchange and storage of cryptocurrencies.

• Transaction amount: up to SGD 3 million (approx. USD 2.25 million) per month per service type.

• Aggregate transaction limit: Two or more payment services cannot be more than SGD 6 million (approx. USD 4.49 million) per month.

• Electronic money float: The balance sheet shall not have in excess of SGD 5 million electronic money at any time.

• Minimum capital requirement: SGD 100,000 (approx. USD 74,900) usually.

Suitability:
The target is smaller crypto companies. When the volume or balance exceeds the limit, the company is bound to undergo an upgrade to a Major Payment Institution (MPI) license.

Major Payment Institution (MPI)

Key Features:

• No restriction regarding the volume of cryptocurrency transactions.

• Mandatory security deposit:

  • Normal transactions SGD 100,000 (approx. USD 74,900)

  • SGD 200,000 (approx. USD 150,000) when offering cross border services or e-wallet services.

• Higher capital requirement:

  • Minimum paid-up capital of SGD 250,000 (approx. USD 187,000).

• Enhanced regulation:

  • Stricter requirements in areas of risk management, cyber security and internal controls.

  • The Monetary Authority of Singapore (MAS) vets these on a regular basis.

Suitability:
Designed to serve large cryptocurrency organisations that have a huge number of transactions.

Along with SPI and MPI, the companies that deal with cryptocurrencies have the opportunity to acquire a Money Transfer License, which authorises sending and receiving money both inside and outside of the country, including cryptocurrencies. The following license is needed:

• Offering money transfer services in and outside Singapore

• Fiat-to-fiat exchange of currencies

• The exchange of cryptocurrencies and fiat money (crypto-to-fiat, crypto-to-crypto)

As per the PSA, Money Transfer License is regulated separately and is under Activity G (money exchange services). Its conditions will be based on the number of transactions and can have extra reporting and capital conditions.

Requirements for Obtaining a Crypto License in Singapore

To obtain a cryptocurrency license in Singapore, a company must fulfill the following requirements:

1. Company Requirements

• Be registered in Singapore as a legal entity.

• Confirm the existence of an office in Singapore.

• Have at least one Singapore-resident director.

• Implement a risk management system specialised for cryptocurrency activities.

• Develop and strictly enforce fair and transparent rules for a token listing on the exchange.

• Create an information base on transactions made.

• Inform the regulator on time about all the changes associated with the functioning of the exchange.

• Follow the anti-money laundering legislation, privacy regulations, etc.

2. Personnel Requirements

The regulator has specific requirements for crypto company personnel. Mandatory positions are:

• Chairman

• CEO

• Members of the board of directors

3. Board of Directors Composition

The board of directors shall include:

• An audit committee

• A nominating committee

• A conflict resolution committee, and other similar committees

4. Executive Standards

The company's executives must:

• Meet high ethical standards

• Have an impeccable reputation

• Possess appropriate education and experience in the financial field

The company's executives must meet high ethical standards, have an impeccable reputation, and have appropriate education and experience in the financial field.

Strategic Compliance Framework

1. Essential Documentation

The launch of tokens requires elaborate documentation packages. Major requirements are:

Business Documentation:

• Substantial business plan and token utility understanding

• Risk mitigation and risk evaluation measures

• Revenue models and financial projections

• Documentation of technology architecture

Compliance Framework:

• Policies and procedures on AML/CFT

• KYC verification systems

• Customer due diligence measures

• Mechanisms of suspicious transaction reporting

Governance Structure:

• Singapore-resident director composition of boards

• Appointment of compliance officer

• Internal audit operations

• Risk management committees

2. Technology and Security Requirements

MAS requires risk management of technology to be strong in the licensed entities. This includes:

• Incident response plan and cybersecurity rules

• Privacy and data protection systems

• System backup and recovering processes

• Periodic security checks and tests

In case of token launches, firms should also provide secure custody measures and separate customer funds with company funds.

License Comparison

Comparison of Payment Institution Licenses in Singapore:

Thus, the choice of license depends on the size of the company and the services provided.

Application Process and Timeline

Phase 1: Company Setup (2 weeks)

Only companies in Singapore are allowed to receive the Payment Institution license with registration of crypto activities. The company should also be doing business in the country.

1. The process of incorporation of a limited liability company in Singapore

2. Lease of a real office in Singapore

3. Employment of local staffs

4. Hiring of an executive director who is a citizen or a resident of Singapore

5. Opening of a corporate bank account

6. Share capital deposition (at least SGD 100,000)

Phase 2: Preparation to the Application to a License (6 weeks)

With the company being established, the company now has to be ready to acquire the Payment Service Provider license. The license has requirements and so does the crypto activities it allows.

1. Selection of an effective AML officer

2. Development of elaborate AML-CFT policies and procedures that are in line with the guidelines

3. Creation of a comprehensive risk analysis of customer information and funds security

4. Generation of elaborate financial planning and forecasts

5. Installation of high level cybersecurity measures and policies

6. The safety deposit preparation (SGD 100,000 in case of a Standard Payment Institution, or SGD 200,000 in case of a Major Payment Institution)

Phase 3: Application of license (Several weeks to 6 months)

As soon as the company ticks all the boxes as per the law, the application is made to the Monetary Authority of Singapore. The evaluation is done on objective as well as subjective basis.

1. Interviews were carried out with the regulator

2. Evaluation of the soundness and proprietary of all the founding members

3. Evaluation of the usefulness of the project to the society

4. Signing up to a single or multiple activities outlined in the license description

5. Standard or Major Payment Institution license selection

Phase 4: Decision making and getting a license

The issuance of the license is done by the final decision of MAS. In case of acceptance, the company is also entitled to execute cryptocurrency operations within the developed standards.

Overview of Crypto Regulation in Singapore

Key Requirements and Conditions:

Such requirements guarantee proper, clean, and well-regulated functioning of crypto companies licensed in Singapore.

Crypto Regulation in Singapore

1. Main Points

• Singapore is one of the first countries to control the cryptocurrencies and is widely considered as a crypto-friendly environment to do business.

• The regulations are strict and are regulated by the Monetary Authority of Singapore (MAS).

• Every crypto business should abide by laws and acts.

2. Critical Laws and Regulations

• Protections and Futures Act (SFA) 2001

• Payment Services Act (PSA) 2019

  • Proposes a concept of Digital Payment Token (DPT).

  • The companies that provide related services need to obtain a license of a payment institution.

3. Other Crypto Exchange Laws

• Financial Advisers Act

• Insurance Act

• Act on Trust Company

• Personal Data Protection Act 

4. Latest Update (April 2024)

• Any company assisting in transferring or exchanging crypto tokens, though it might not possess the tokens, is now subject to new rules.

• There are also companies that have international transactions through digital assets.

• Businesses must:

  • Have separate funds of clients and their personal assets

  • Ensure high security and accounting

  • Make assets safe

5. MAS Registry

• MAS maintains a list of all registered crypto companies publicly.

• Two categories:

  • Common payment institutions

  • Mainstream payment institutions (having DPT services)

• The registry enhances openness and credibility.

6. Overall Crypto Company Requirements

• Should be registered in Singapore.

• At least one local director.

• Have physical office in Singapore.

• Employ the services of local personnel e.g. an AML (Anti-Money Laundering) Officer.

• Pass audits and give frequent reports.

• Capital requirements is about SGD 100,000 (nearly USD 74,900).

• The procedure of licensing normally takes not more than 12 months.

7. Conclusions

• The Singapore laws are more safe, transparent, and are geared towards prevention of financial crimes.

• To guarantee conformity and confidence in the crypto business, the country is keen on tracking market participants.

Singapore Crypto Company Licensing Fees

1. Application Fees

• Standard Payment Institution License (Digital Payment Token Service):
  SGD 1,000

• Large Payment Institution License (the same service):
  SGD 1,500

2. Modification Fees

• To include a DPT (Digital Payment Token) service to a typical payment institution license:
  SGD 1,000

• To add a DPT service with the help of changing a license of a major payment institution:
  SGD 1,500

3. Annual Supervisory Fees

• The licensees are required to pay a yearly fee in licensing fees depending on the nature of the license and services offered.

• Standard payment institution license:
  About SGD 5 a year.

• In the case of large payment institution licences:
  With the addition of DPT service, the standard fee is doubled as the annual fee.

4. Key Points

• All crypto companies in Singapore must pay an application fee, with higher fees for Every crypto firm in Singapore has to pay an application fee and the fee is more on bigger institutions or wider services.

• The annual fees are based on the size of services and the kind of license that is possessed.

• There is also an extra cost of modifying existing licenses to include new services.

Taxation of Crypto Activities in Singapore

1. Key Points

• No special crypto tax category: Cryptocurrencies are not taxed on a special category, but on the activity and circumstance of the business.

• Business tax (trading businesses): Trading businesses pay regular corporate income tax (17 percent of net profits).

• GST (Goods and Services Tax): Purchase and sale of cryptocurrencies are not subject to GST since January 2020.

• Tax exemptions:

  • Tax exemptions to crypto companies come in the form of:

    • They are residents of Singapore taxes,

    • less than 20 shareholders,

    • One of the shareholders has no less than 10% of the company stocks.

    • Qualifying firms can have 75 per cent relief on the first SGD 100,000 of profits and 50 per cent relief on the next SGD 100,000 of profits.

• No capital gains tax: Crypto shareholder who hold their tokens long do not pay tax on the sale of tokens. However, when crypto is traded regularly as a business, trading income may be charged as profits.

• It depends on cases: The taxation depends on the purpose of holding, frequency of trading or selling of crypto and the nature of crypto activities whether it appears like investment or business.

• Current regulation: The regulation can be changed and that is why it is better to address a tax expert or even to consider the newest manuals by the state.

2. Quick Reference Table

3. Important Reminders

• The crypto tax does not only rely on the fact that you own it but what you do with it.

• Singapore is appealing to long-term crypto stakeholders since there is zero capital gains tax.

• Tax laws might change or you may always consult the latest information or the expert.

Strategic Considerations for Web3 Executives

1. Market Access vs. Regulatory Burden

The new DTSP system poses a strategic challenge to the Web3 executives. Although Singapore provides access to the Asian markets and credibility of regulation, the compliance burden has become very high.

Firms will have to consider whether the advantages of Singapore are worth the expenses and limitations. Other jurisdictions such as Hong Kong, Dubai and other Asian markets might provide more advantageous frameworks to some business models.

2. Token Classification Strategy

Appropriate token classification is also important in terms of compliance. Tokens are of three primary categories as classified by MAS:

• Digital Payment Tokens (DPTs): They are utilised as payment mechanisms, and they are licensed by PSA

• Securities Tokens: Securities compliance investment products

• Utility Tokens: These allow access to services, and are typically less regulated

Executives are advised to collaborate with legal counsel to classify tokens correctly because incorrect identification might attract massive fines.

As a recommendation, we advise you to read Marketing Strategies for Crypto Pre-sales to get the tips on how to generate interest and adherence in your token sale campaign.

3. Building Sustainable Compliance

The sustainable compliance capabilities must be created to succeed in the long term, not minimum viable compliance. This includes:

• Putting in place effective internal controls

• Frequent checking of compliance and reporting

• Persistent training and development of the staff

• Building relationships with regulators

To understand more about how to structure your token sale to satisfy shareholder and regulatory requirements be sure to check out our comprehensive guide on token sale structure.

Recent Improvements and Future Prospect

1. Enforcement Actions

In the recent past, MAS has taken steps to enforce its position with penalty actions. In June 2025, five large payment institutions were issued with composition penalties of SGD 960,000 on AML/CFT violations. This is an indication of heightened regulation within the industry.

2. Market Impact

The tightened regulation has led to major consolidation of the market. Numerous small firms have either closed shop in Singapore or moved to other jurisdictions. This opens up chances of gaining market share by operators who act in compliance.

3. Regional Competition

Hong Kong has been very aggressive in promoting itself as an alternative to Singapore to Web3 companies. Members of the Legislative Council have publicly written to Singapore-based companies to offer its help in case they want to move.

Conclusion

Singapore has developed a highly advanced crypto licensing system that requires high compliance capacity. Although the barriers to entry have become very high, the companies that comply with the rules have the advantage of operating in one of the most respected financial jurisdictions in the world.

The executives of Web3 considering Singapore as a location to launch tokens should pay close attention to their compliance-related preparedness and long-term strategic goals. The payoff of investment in proper licensing and compliance can be a great competitive advantage, yet it must be committed to continual regulatory excellence.

Achieving success in Singapore's new regulatory landscape demands early planning, considerable resources and expert knowledge. Those that adopt these criteria can lay the groundwork for long-term growth in an ever-changing digital asset space.

The success factor is not seeing regulation as a blocker, but a competitive advantage that distinguishes the serious operators and the opportunistic players. Singapore remains open to innovation, although only to those firms that are ready to embrace the high standards of compliance and operational excellence that it offers.

Ready to Launch Your Token in Singapore with Full Compliance?

TokenMinds assists Web3 and blockchain companies launch tokens and comply with the tight regulations in Singapore. Our team merges the best-in-class financing actions strategy (ICO, IEO, IDO) and profound legal and compliance expertise to assist you in launching confidently and compliantly.

Launch Your Token with TokenMinds Now

FAQ on How to Get a Crypto License in Singapore

1. How much does a crypto license cost in Singapore?

The price of acquiring a crypto license in Singapore may differ according to the kind of license and services offered. The Monetary Authority of Singapore (MAS) charges varied fee structures on varied licensing. The cost of obtaining a license is between SGD 1,000 and SGD 1,500.

2. Is there a license to trade cryptocurrency in Singapore?

The cryptocurrency exchanges will need a license, but only when they are involved in the exchange of tokens that are subject to securities laws. Service providers that provide only digital payment tokens issued by a central bank or a financial institution with a limited purpose are not needed to get a license under the Payment Services Act.

3. Is crypto regulated in Singapore?

Cryptocurrency is regulated in Singapore, yes. The Monetary Authority of Singapore (MAS) has established an elaborate regulatory framework to regulate activities associated with cryptocurrencies and maintain integrity and stability of the financial system.