Singapore's digital token rules: PS Act, the DTSP regime and stablecoins

How MAS licenses payment token services, why offshore-only firms had to stop in June 2025, and where the stablecoin law stands.

2026-10-17 · 6 min read

If your company holds crypto with a Singapore provider, is based in Singapore, or plans to issue or use a Singapore-regulated stablecoin, three layers of rules matter: the Payment Services Act for crypto services, a stricter licence for firms serving only overseas customers, and a stablecoin framework that is still being written into law as of October 2026.

Layer one: the Payment Services Act

The Payment Services Act 2019 is Singapore's main law for payment firms, and MAS describes it as a flexible framework for payment systems and providers [1]. It sets out licence classes, including money-changing licensees, standard payment institutions and major payment institutions, and it covers digital payment token (DPT) services, which is the Singapore term for services such as buying, selling and transferring cryptocurrencies [1]. A dedicated MAS notice, PSN02, sets anti-money laundering rules for DPT service providers [1]. The scope of regulated activities was widened on 4 April 2024, when amendments made in 2021 took effect [1].

Retail protections that shape what providers can offer

In July 2023 MAS set out custody-style protections. DPT service providers must keep customer assets separate from their own and hold them on trust, with a year-end 2023 deadline for that requirement [2]. They must reconcile customer assets daily, keep proper books, keep custody operationally independent from other business units, and explain to customers the risks of leaving assets with them [2]. They may not offer lending or staking of retail customers' tokens; those services remain open to institutional and accredited investors [2].

In November 2023 MAS added consumer access rules. Providers must assess whether a retail customer understands the risks before granting access, may not offer incentives to trade, may not provide financing, margin or leverage, may not accept locally issued credit cards, and must limit how much crypto counts toward a customer's net worth [3]. MAS said these measures would be phased in from mid-2024 [3].

For a finance team, the practical effect is that a Singapore account opened as a corporate or accredited customer may offer services that a retail account cannot, and the trust and reconciliation rules give you a basis to ask a provider how your assets are held.

Layer two: the DTSP regime from 30 June 2025

A separate regime under Part 9 of the Financial Services and Markets Act 2022 covers digital token service providers (DTSPs). MAS issued its consultation response on 30 May 2025, and the regime took effect on 30 June 2025 [4]. From that date, Singapore firms providing DPT or tokenised capital-markets services only to customers outside Singapore needed a licence [4].

MAS made clear it would generally not grant such licences, citing money laundering risk and the difficulty of supervising businesses whose activity is mainly abroad [4]. There was no transition period: affected firms were expected to stop their offshore-only activity, and MAS said it knew of a very small number of them [4]. Firms serving customers in Singapore are not new to regulation; they were already covered by the Payment Services Act, the Securities and Futures Act or the Financial Advisers Act [4]. Utility and governance tokens fall outside the DTSP licensing requirement [4].

If you rely on a Singapore-incorporated entity that served only non-Singapore clients, it is worth confirming that it holds the right licence or has wound that business down. Holding your own treasury is a different matter from providing services to others, but where a group entity does both, the line is a legal question for counsel.

Layer three: stablecoins, still in progress

MAS finalised the design of its single-currency stablecoin (SCS) framework in August 2023. It applies to stablecoins pegged to the Singapore dollar or a G10 currency and issued in Singapore [5]. Issuers must meet standards on reserve composition, valuation, custody and audit; hold minimum base capital and liquid assets; redeem at par within five business days of a request; and publish disclosures [5]. Only compliant issuers may use the label MAS-regulated stablecoins, and misusing that label can lead to fines or prison [5].

The framework still needs legislation. On 1 September 2026 MAS opened consultation P015-2026 on draft amendments to the Payment Services Act to implement it, closing on 16 October 2026 [6][7]. The proposals cover capital, par redemption, reserves, disclosure, protection of customer money, a ban on paying interest on regulated stablecoins, stress testing and recovery and wind-down plans [7]. MAS also proposes to allow stablecoins jointly issued in Singapore and abroad, and to recognise a limited number of foreign stablecoins that meet comparable standards for cross-border wholesale use [7]. Stablecoins that do not meet the standards would be treated as DPTs, with stricter consumer protections [7]. As of October 2026 these are proposals; final rules and dates have not been set.

Why this matters for the books

None of these rules changes how you account for a token. They change your evidence and risk picture. Trust and segregation arrangements help support the view that assets held at a provider are yours, which matters when you assess custody and counterparty exposure. A future MAS-regulated label may help when you document why a stablecoin is treated as a low-risk cash-like holding in your treasury policy, but the label is not an accounting classification, and the final rules may differ from the draft.

What to do

• List every Singapore provider and group entity you use, and record its MAS licence status from the MAS register.
• Ask custodians how your assets are segregated and held on trust, and how often they reconcile, and keep the answer on file.
• Check whether any group entity provided token services only to overseas customers before 30 June 2025, and confirm how that was resolved.
• If you hold SGD or G10 stablecoins, track the outcome of consultation P015-2026 before relying on any regulated status in your policy.
• Treat this as general information; get Singapore legal advice for licensing questions.

Sources

1. Payment Services Act 2019 (Monetary Authority of Singapore)
2. MAS Publishes Investor Protection Measures for Digital Payment Token Services (Monetary Authority of Singapore)
3. MAS Strengthens Regulatory Measures for Digital Payment Token Services (Monetary Authority of Singapore)
4. MAS Clarifies Regulatory Regime for Digital Token Service Providers (Monetary Authority of Singapore)
5. MAS Finalises Stablecoin Regulatory Framework (Monetary Authority of Singapore)
6. Consultation on Proposed Amendments to the Payment Services Act for Stablecoin Regulation (Monetary Authority of Singapore)
7. MAS Consults on Legislative Amendments to Implement Stablecoin Regulatory Framework (Monetary Authority of Singapore)

General information for finance teams, current as of publication. Not legal, tax or accounting advice.

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