Singapore MAS Payment Services License: The New Requirements for 2026

Singapore's crypto licensing regime has matured. The MAS is selective, but authorization carries weight that cheaper jurisdictions can't match.

The Monetary Authority of Singapore (MAS) has administered digital payment token (DPT) licensing under the Payment Services Act since 2020. The regime has evolved substantially, with tightened requirements, clearer guidance, and a track record that makes MAS authorization genuinely meaningful. Singapore isn't the cheapest or fastest route to market. It's one of the most credible.

The licensing framework

The Payment Services Act regulates seven payment services, including digital payment token services. DPT services cover dealing in DPT (buying/selling) and facilitating exchange of DPT.

Two license tiers exist:

Standard Payment Institution (SPI): For firms handling up to SGD 3 million monthly transaction volume or SGD 6 million e-money float. Baseline requirements with lower capital thresholds.

Major Payment Institution (MPI): Required above those thresholds. Full regulatory requirements including SGD 250,000 base capital for DPT services, plus ongoing prudential requirements.

Most firms seeking serious crypto operations need MPI authorization. The SPI tier works for smaller operations or specialized services with limited volumes.

What MAS actually wants

MAS reviews applications holistically. Beyond checking boxes, they assess whether the firm has genuine capability and intent to operate compliantly.

Governance and expertise: Directors and key personnel must demonstrate relevant experience. Not just financial services background, but specific knowledge of crypto markets, AML risks, and operational requirements. MAS interviews key personnel directly.

AML framework: Comprehensive and tailored to the business model. Generic policies copied from templates don't pass. MAS expects documented risk assessments specific to your customer base, products, and geographic exposure.

Technology and security: Detailed systems architecture, security frameworks, incident response procedures. Third-party audits often required. MAS takes operational resilience seriously.

Substance: Meaningful Singapore presence. Local directors (at least one ordinarily resident), operational staff in Singapore, genuine office presence. Purely nominal setups don't qualify.

The application process

Applications submit through the MAS portal. Complete applications include business plan, organizational structure, compliance policies, financial projections, and personal documentation for all key personnel.

MAS doesn't publish processing timelines because they vary substantially by application quality and completeness. Realistic expectations: 6-12 months from complete application to decision, often longer with rounds of questions and clarifications.

MAS has rejected numerous applications and revoked licenses from authorized firms that failed compliance reviews. They're not rubber-stamping applications. The selectivity is the point: MAS authorization signals something about the firm that holds it.

Cost reality

Budget substantially for Singapore licensing:

• Capital requirement: SGD 250,000 base for MPI DPT services (higher with additional activities)
• Annual license fee: SGD 1,000-2,000 depending on license type
• Legal and consulting: SGD 50,000-150,000+ for application preparation
• Local substance: Office space, local directors, compliance staff (SGD 100,000+ annually)
• Systems and security: Variable but significant for required infrastructure

First-year total: SGD 500,000-1,000,000+ is realistic depending on business scope. Ongoing compliance costs add SGD 200,000+ annually. Singapore licensing isn't for undercapitalized startups.

Why firms pursue it anyway

Singapore's value proposition isn't cost. It's credibility and access.

Banking relationships are possible in Singapore with proper licensing. Banks that won't touch crypto elsewhere will consider MAS-licensed entities. That alone justifies the cost for many firms.

Institutional clients, particularly in Asia, recognize MAS authorization. It opens doors that licenses from less rigorous jurisdictions don't.

Singapore itself is a substantial market. Access to Singaporean customers requires local licensing. For firms targeting Asia-Pacific, Singapore provides a foundation.

The regulatory clarity helps too. MAS has published extensive guidance on crypto activities. The rules are demanding but comprehensible. Firms know what's expected.