Singapore Crypto Compliance Guide 2025: PSA, FSMA & MAS Requirements

Let me be honest. Navigating Singapore’s crypto regulations feels like trying to solve a Rubik’s Cube while riding a motorcycle. One minute, you think you’ve got it figured out; the next minute, MAS drops a new circular that changes everything. 

But here’s the thing: Singapore is actually getting this right in ways that most countries aren’t even attempting.

I’ve been watching the crypto regulatory space for years now, and what Singapore has done is pretty remarkable. Instead of the usual “ban everything” or “ignore it and hope it goes away” approaches we see elsewhere, they’ve built something that actually works. 

Sure, it’s complex: there are compliance hoops to jump through, and enough acronyms to make your head spin (PSA, DPT, SFA, anyone?). But at least there’s a clear path forward, which is more than I can say for most places. And with this guide, I am going to help you get the full context of the landscape. 

State of Cryptocurrency in Singapore

Singapore treats cryptocurrency like any other financial service under the Payment Services Act 2019. While many countries banned crypto or created confusing rules, Singapore built clear regulations that let businesses operate legally. 

The core requirement is simple: if you want to provide crypto services like exchanges or wallets, you need a Digital Payment Token license from the government (more on this in a minute). This approach made Singapore a popular destination for crypto companies looking for regulatory certainty.

The numbers show it worked: more than 2,000 blockchain companies have set up shop here. Crypto investments hit $1.2 billion in 2022, and even when global funding dried up in 2023, Singapore kept the lights on while other countries shut everything down.

The regulatory framework involves three main government bodies:

1. Monetary Authority of Singapore (MAS) – Singapore’s central bank and financial regulator. Controls all banking, insurance, and securities markets in the country. For crypto, they issue licenses to exchanges and wallet providers, set compliance rules, and monitor the industry. As of 2025, 33 companies have proper MAS licenses now.
2. Accounting and Corporate Regulatory Authority (ACRA) – National agency that registers all companies and regulates accountants. Crypto businesses register here like any other company, file annual returns, and follow anti-money laundering rules.
3. Inland Revenue Authority of Singapore (IRAS) – Singapore’s tax collection authority. They determine tax rates and collect all government revenue. For crypto, they classify whether trading counts as business income or capital gains and set clear tax obligations.

This coordinated approach created a system where crypto businesses can operate with legal clarity. 

Now, let’s dig more deep into this system. 

Singapore Cryptocurrency Platform Regulations

Singapore has built what might be the most comprehensive crypto regulatory framework in the world. The system is complex but logical, covering everything from basic licensing to advanced cybersecurity requirements.

       1. MAS Notice PSN02

This notice forms the foundation of Singapore’s approach to preventing money laundering in crypto. PSN02 requires every crypto platform to know exactly who their customers are and what they are doing with their money. The notice covers detailed procedures for customer verification, ongoing monitoring of transactions, and reporting suspicious activities to authorities. Think of it as the rulebook that ensures crypto platforms operate like traditional financial institutions when it comes to preventing financial crimes.

      2. Payment Services Act 2019 (PSA)

The PSA is Singapore’s primary law for regulating crypto platforms. This act determines who can legally operate cryptocurrency services and under what conditions. The framework recognizes that different types of crypto businesses pose different levels of risk and regulates them accordingly.

 

License Type	For	Volume Threshold	Minimum Capital Required	Key Requirements	Best For
Standard Payment Institution License	Smaller Operators	Up to SGD 3 Million Monthly	SGD 100,000	Basic operational standards, Standard compliance measures, Regular reporting, Customer due diligence	Small to medium crypto exchanges, wallet providers, payment processors
Major Payment Institution License	Large-Scale Operations	Above SGD 3 Million Monthly	SGD 250,000	Enhanced compliance, Advanced risk management, Comprehensive audit, Stricter operational standards	Major exchanges, institutional platforms, high-volume trading platforms
Exempt Payment Service Provider	Limited Scope Operations	Very specific low-risk activities	Varies by activity type	Notification to MAS, Follow specific restrictions, Limited scope, Regular compliance monitoring	Niche service providers, specialized platforms, limited-scope operators

So basically, If you are:

• Under SGD 3M → Standard Payment Institution License
• Above SGD 3M → Major Payment Institution License
• Perform Very Limited Activities → Consider Exempt Status

The PSA creates a tiered system that scales regulatory requirements with business size and risk profile, ensuring both innovation and consumer protection.

      3. Financial Services and Markets Act 2022 (FSMA)

FSMA extends Singapore’s regulatory reach to catch crypto businesses that previously operated in gray areas. This law specifically targets platforms serving customers outside Singapore but maintaining some connection to the city-state. The act covers custody services for tokenized securities and gives MAS broader powers to supervise cross-border digital asset activities. FSMA essentially closes regulatory gaps that some operators were using to avoid oversight.

     4. Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) Requirements

Singapore’s AML and CFT rules for crypto platforms mirror international banking standards. These requirements ensure that digital assets cannot be easily used for money laundering or terrorist financing. The standards are comprehensive and leave little room for interpretation.

• Customer Due Diligence: Complete identity verification including government ID checks, address confirmation, and beneficial ownership identification for corporate accounts
• Transaction Monitoring: Automated systems that flag unusual patterns, large transactions, or activities that deviate from customer profiles
• Suspicious Activity Reporting: Mandatory reports to authorities within specific timeframes when transactions appear questionable or suspicious
• Record Keeping: Detailed documentation of all customer interactions and transactions is maintained for at least five years, with specific requirements for cross-border activities
• Staff Training: Regular education programs ensure that all employees understand AML requirements and can identify potential red flags
• Independent Audit: Annual third-party assessments of compliance programs to verify effectiveness and identify improvement areas

These requirements create multiple layers of protection against financial crimes while ensuring crypto platforms maintain the same standards as traditional financial institutions.

      5. Consumer Protection Regulations (September 2024)

The updated consumer protection rules show that MAS takes retail investor protection seriously. These regulations prevent crypto platforms from taking advantage of inexperienced investors through misleading marketing or inappropriate products. The rules require clear risk disclosures, proper customer suitability assessments, and restrictions on certain high-risk practices like credit card purchases of cryptocurrencies.

        6. Travel Rule Compliance

The Travel Rule requires crypto platforms to share customer information when processing transfers above certain amounts. Both sending and receiving platforms must collect and exchange details about the transaction parties. This rule applies to all significant crypto transfers regardless of the specific cryptocurrency or blockchain used. The requirement helps authorities track large transactions and prevents the use of crypto for illicit activities.

       7. The No-Exception Deadline (June 30, 2025)

June 30, 2025, marks the final deadline for compliance with FSMA requirements. After this date, any platform providing digital token services without proper licensing must cease operations immediately. MAS has been clear that no extensions or grace periods will be granted. This deadline represents the completion of Singapore’s comprehensive regulatory framework, ensuring all crypto activities operate under proper oversight.

How Can Crypto Platforms Stay Compliant With Singapore’s Cryptocurrency Regulations

You need everything working perfectly before MAS even looks at your application. KYC, AML monitoring, transaction reporting, Travel Rule compliance – the whole package. Building this from scratch will eat up months of development time and a significant chunk of your budget.

But ready-made compliance infrastructure exists. Instead of hiring a team to build KYC systems and figure out how to monitor suspicious transactions, you can plug into existing solutions that already handle Singapore’s requirements. 

Signzy’s platform covers the complete compliance stack – automated identity verification, real-time AML screening, transaction monitoring that catches red flags, and reporting systems that keep MAS happy. 

To know more about how exactly you can streamline compliance ops, schedule a demo here.