Singapore Central Bank Grants In-Principle Approval for Three Crypto Licenses

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The Monetary Authority of Singapore (MAS) has granted in-principle approval to three digital payment token (DPT) service providers, marking a significant development in the country’s regulated crypto landscape. This latest round of approvals allows these firms to legally offer cryptocurrency-related services under Singapore’s robust financial framework, reinforcing the city-state’s reputation as a forward-thinking yet tightly regulated hub for digital assets.

Under the Payment Services Act (PSA), which came into effect in January 2020, all entities offering DPT services in Singapore must obtain formal licensing from MAS. The new approvals bring the total number of licensed or in-principle approved DPT providers to 14, up from 11 previously. Despite receiving 196 applications as of late May, MAS has maintained a rigorous vetting process, reflecting its commitment to consumer protection and market integrity.

Key Players Behind the New Approvals

While Deputy Prime Minister Heng Swee Keat announced the approvals during a recent speech without naming the recipients, subsequent industry updates have revealed key players involved.

Crypto.com, a globally recognized crypto platform, confirmed it was among the three firms to receive in-principle approval. In an official press release, the company stated that once fully licensed, it will be authorized to provide DPT services including crypto-to-fiat payments, wallet services, and asset trading—activities governed under the PSA.

Additionally, industry reports suggest that Genesis Trading—a prominent institutional crypto trading desk—and Sparrow Exchange, a Singapore-based digital asset exchange focused on retail and SME users—are the other two platforms under in-principle approval.

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This selective licensing underscores MAS’s cautious but progressive approach: fostering innovation while ensuring only well-capitalized, compliant, and secure firms operate within its jurisdiction.

Regulatory Rigor Meets Industry Growth

Nicholas Hanna, Partner at Pinsent Masons MPillay, highlighted the significance of MAS’s stringent evaluation process:

"With growing consumer engagement and heightened scrutiny on the crypto sector, demand for DPT licenses is extremely high. Out of 196 applications received, only around 14 have been approved or given in-principle status. This demonstrates the thorough due diligence conducted by MAS, ensuring that only the most credible and resilient companies serve the public in this rapidly evolving industry."

MAS’s regulatory philosophy centers on balancing innovation with investor safeguards. In January 2025, Singapore introduced tighter restrictions on cryptoasset promotions, limiting marketing activities by DPT licensees such as payment institutions, banks, and PSA applicants. These measures aim to prevent unsophisticated investors from being lured into high-risk investments without adequate disclosures.

Such policies reflect a broader trend: regulators worldwide are stepping up oversight as digital assets become more integrated into everyday finance. Singapore’s model—clear rules, strict entry barriers, and ongoing supervision—positions it as a benchmark for responsible fintech development.

Why DPT Licensing Matters

The DPT license is not just a formality—it’s a gateway to legitimacy and operational scalability in one of Asia’s most sophisticated financial markets. Holders can:

For businesses, obtaining a DPT license signals compliance, builds trust with users, and opens doors to banking partnerships often closed to unlicensed entities.

For consumers, it means greater assurance that their funds are held securely, transactions are monitored for illicit activity, and dispute resolution mechanisms are in place.

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The Bigger Picture: Singapore’s Vision for Fintech Leadership

Singapore’s latest licensing moves align with its broader ambition to be a global leader in financial technology. By maintaining high regulatory standards while supporting innovation through sandbox environments and clear policy guidance, MAS fosters an ecosystem where trustworthy players thrive.

This approach also enhances cross-border opportunities. For example, recent policy changes now allow Hong Kong- and Macao-invested enterprises operating in the Guangdong-Hong Kong-Macao Greater Bay Area to choose arbitration venues flexibly—boosting legal certainty for international fintech ventures.

As digital assets continue to evolve—from stablecoins and tokenized assets to decentralized finance applications—regulatory clarity becomes even more critical. Singapore’s phased, principle-based approvals ensure that growth does not outpace oversight.

Frequently Asked Questions (FAQ)

Q: What is a DPT license in Singapore?
A: A Digital Payment Token (DPT) license under Singapore’s Payment Services Act authorizes companies to provide services involving cryptocurrencies, such as exchange, custody, and payment processing. It is issued by the Monetary Authority of Singapore after rigorous compliance checks.

Q: Why does MAS approve licenses in principle first?
A: In-principle approval means MAS has assessed the applicant’s fitness and intention to comply but requires final checks before full licensing. This includes confirming operational readiness, risk management systems, and anti-money laundering controls.

Q: How long does it take to get a DPT license?
A: The process typically takes between 6 to 12 months, depending on application completeness and regulatory review timelines. Some applicants face longer waits due to additional compliance requirements.

Q: Can foreign companies apply for a DPT license?
A: Yes, foreign firms can apply but must establish a local presence in Singapore, meet capital requirements, and comply with all national laws related to financial services and cybersecurity.

Q: Are there ongoing compliance obligations after getting licensed?
A: Absolutely. Licensees must submit regular reports, maintain sufficient capital, conduct audits, and adhere to advertising restrictions designed to protect retail investors.

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Core Keywords

With continued momentum in licensing and policy refinement, Singapore remains at the forefront of building a sustainable, secure, and innovative digital asset economy—one responsible player at a time.