Running a digital payment token (DPT) service in Singapore? Here’s why you need to get licensed now.

Summary

• Get Licensed for DPT Services in Singapore: The Monetary Authority of Singapore (MAS) tightened the licensing requirements for Digital Payment Token (DPT) service providers in June 2025. This article explains the licensing requirements you need to meet.

• Navigating the MAS Licensing Process: From capital requirements to compliance frameworks, we break down the rigorous process of obtaining a DPT service license from the Monetary Authority of Singapore (MAS).

• Expert Support for Your DPT License Application: Eastern Mezzanine Law Corporation's legal experts provide end-to-end support to ensure your DPT service business is fully compliant and successfully licensed to operate in Singapore.

In a landmark move, MAS tightened its regulatory framework for Digital Payment Token (DPT) service providers on 6 June 2025. In its latest clarification on the regulatory regime for digital token service providers, MAS mandates that DPT service providers solely serving customers outside Singapore must be licensed. 

With this regulatory shift, MAS closed a longstanding regulatory loophole that many DPT service providers have leveraged to operate in Singapore without a licence. This marks a pivotal moment for the DPT industry in Singapore, sending a clear signal that all crypto businesses must adhere to the country’s high regulatory standards to operate legally, regardless of their customers' geographical locations.

This article examines the fundamentals of MAS’s new regulatory move and how corporate infrastructure experts like Mezzanine Enterprise can help companies apply for the appropriate licences to continue their operations in Singapore.

Shifting from exemption to obligation

Previously, the Payment Services Act (PSA)’s regulations for DPT service providers predominantly focused on entities serving retail customers in Singapore. Under this framework, there was a significant exemption for businesses that, while incorporated and operating from Singapore, exclusively catered to customers located outside Singapore. 

This created a perceived loophole that enabled DPT service providers to leverage Singapore’s stable corporate infrastructure and global connectivity without needing to undergo the rigorous MAS licensing process. A DPT service provider could be classified as a Singapore company in name and location, but operate outside the direct supervisory reach of MAS.

MAS has now decisively closed this loophole, encoding the regulation into the Financial Services and Markets Act. From 30 June 2025 onwards, DPT service providers that solely serve customers outside of Singapore with PSA-identified payment services must be licensed. 

This fully aligns the regulation of DPT services with traditional financial services, where activities conducted from Singapore are regulated by MAS, irrespective of where the customers are located. Do note that utility and governance token service providers are not affected by this regulatory change.

Why did MAS tighten digital payment token (DPT) service regulations?

This move is a strategic response to the evolving global cryptocurrency landscape, driven by two primary motivations: mitigating reputational risk and preventing regulatory arbitrage.

In its official media release, MAS clarified that the new rules address "money laundering risks" and other challenges that arise when DPT service providers operate from Singapore without proper oversight, as the central bank is "unable to effectively supervise such persons." 

It is pertinent to note that MAS’s decision was not made on a whim. In October 2024, MAS published a consultation paper on its proposed regulatory approach, regulations, notices, and guidelines for DPT service providers issued under the Financial Services and Markets Act 2022. In line with its collaborative approach in making key industry-wide decisions, MAS sought the opinions of industry players to determine the feasibility of its proposal for a month, consolidating their feedback in a detailed document. 

In fact, MAS has been scrutinising crypto since 2022. In its 6 June media release, MAS asserts that:

“[Its] position on [existing DPT service providers serving only customers outside of Singapore] has been consistently communicated for a few years since the first response to public consultation issued on 14 February 2022 and in subsequent publications on 4 October 2024 and 30 May 2025.”

MAS’s cautionary stance towards cryptocurrency is not unprecedented. While the regulator does support cryptocurrency to some degree, it balances this with safety measures designed to mitigate potential downturns. 

This is especially true in light of the catastrophic collapses of major cryptocurrency exchange FTX and the Terra network in 2022, which serve as stark reminders of the potential fallout from under-regulated entities. Such events can tarnish the jurisdiction from which they operate, prompting MAS to protect Singapore's hard-won status as a trusted financial hub.

Aside from reputational risk, MAS also seeks to combat regulatory arbitrage, where businesses flock to jurisdictions with lighter regulations to avoid the compliance requirements of stricter regimes. By removing the licensing exemption, MAS ensures that Singapore is not misused as a "crypto shelter" for firms seeking to operate with minimal oversight. 

Combined with MAS “[setting] the bar high for licensing and generally not [issuing] a licence”, this move is, as aptly stated by Cointelegraph, a "near-ban" on the old way of doing business, pushing Singapore away from being a loosely defined "crypto hub" towards becoming a well-regulated and sustainable "digital asset hub."

While some might interpret MAS’s move as anti-crypto, MAS’s decision is instead a pro-regulation stance designed to preserve Singapore’s global reputation as a robust and credible financial ecosystem where innovation can thrive within a framework of trust and security.

As ChainArgos' general counsel, Patrick Tan, stated in an interview with Cointelegraph,

"We need to recognise that Singapore is first and foremost a global financial centre, not necessarily a crypto one.”

Who is affected by MAS’s regulatory change?

MAS’s regulatory change has a far-reaching impact on any DPT service provider. Whether you are a crypto exchange, brokerage firm, or digital wallet provider, so long as you’re incorporated in Singapore but have been relying solely on foreign-client exemption to stay license-free, you are affected.

One such example is WazirX, an India-serving crypto exchange that was initially based in Singapore. Following MAS’s regulatory update, WazirX proposed a restructuring plan that was rejected by the Singapore High Court. Consequent to this, WazirX announced its move to Panama.

So, what's next?

The tightening of rules for Singapore-based DPT service providers is part of a global trend toward stricter crypto regulations. Consider the Philippines, whose Securities and Exchange Commission (SEC) mandates all licensed crypto firms to maintain a physical office. As for Thailand, it recently blocked five crypto exchanges, including big names like Bybit and OKX, under licensing and money laundering charges. 

In alignment with standards set by the Financial Action Task Force (FATF), this global push for compliance underscores that regulators are serious about enforcement. The message is unequivocal: regulation in Singapore’s financial sector is not a recommendation; it is a requirement that is strictly enforced.

In short, it’s time to get licensed. And you don’t have to go about it alone, too: Eastern Mezzanine is here to help.

Secure your licence with Eastern Mezzanine

After all, navigating the MAS licensing process under the PSA is complex and resource-intensive. The application requires more than just paperwork, demanding the implementation of robust internal controls, a deep understanding of Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) obligations, along with a well-defined risk management framework.

This is where Eastern Mezzanine provides a critical solution.

Our team of legal counsels is equipped with deep expertise in payment services, poised to guide you through the licensing process. Whether you’re looking to apply for a Standard Payment Institution (SPI) or a Major Payment Institution (MPI) licence, we’ve got you covered.

Learn more about the PSA licenses in our article.

We offer a bespoke approach to securing your MAS licence, working with you to:

1. Conduct a gap analysis: We assess your current operations against MAS’s requirements, working out which areas need to be enhanced.

2. Develop robust frameworks: We design and implement the necessary AML/CFT controls, corporate governance structures, and risk management protocols that are mandated by MAS.

3. Prepare a comprehensive application: We manage the entire application process, ensuring all necessary documentation is precise, complete, and most importantly, communicates your firm’s commitment to compliance.

4. Provide ongoing support: Our support doesn’t start and end with the application. We take active steps to ensure you maintain your licence for the long term.

   
   

The time to act is now. Don't let MAS’s regulatory upheaval hinder your continued DPT operations in Singapore.

Talk to us now to find out how we can help you navigate the licensing process and secure your business’s future in Singapore's evolving digital asset ecosystem.