Singapore Crypto Regulation 2026: MAS DPT License & Asia Hub

The PSA provides for two main DPT licence types: Standard Payment Institution (SPI) and Major Payment Institution (MPI). The distinction is primarily based on monthly transaction volumes, with MPI applicable to larger operations.

MAS operates the FinTech Regulatory Sandbox, which allows companies to test financial products and services in a live environment with certain regulatory requirements relaxed for a defined period. For crypto businesses with novel business models that might not fit neatly into existing PSA categories, the Sandbox provides a pathway to operate while MAS develops appropriate regulatory treatment.

Project Guardian is MAS's landmark initiative for institutional DeFi and asset tokenisation, launched in 2022 as a public-private partnership with major financial institutions including JPMorgan, DBS Bank, UBS, and Standard Chartered. Project Guardian has produced industry frameworks for tokenised assets, institutional DeFi pools, and cross-border settlement using distributed ledger technology. By 2026, Project Guardian had advanced to testing interoperable digital asset networks across multiple jurisdictions, with MAS as the coordinating authority.

Project Orchid is MAS's ongoing research and design initiative for a Singapore retail CBDC (Central Bank Digital Currency). Unlike China's e-CNY, Project Orchid is focused on programmable money use cases — government benefit disbursements, conditional payments, and voucher systems — rather than a general-purpose retail digital currency. Project Orchid's findings have informed Singapore's stablecoin regulatory framework and MAS's approach to programmable payments.

MAS published its stablecoin regulatory framework in August 2023, creating a world-leading regulatory structure for single-currency stablecoins (SCS). The framework applies to SCS pegged to the Singapore dollar or to any G10 currency (USD, EUR, GBP, JPY, CAD, AUD, CHF, NOK, SEK, DKK) issued in Singapore.

Key requirements for MAS-regulated stablecoins: reserve assets must be held at par value at all times in high-quality liquid assets (cash, central bank reserves, short-duration government bonds); reserves must be independently audited and attested monthly; issuers must meet MAS minimum capital requirements (higher of SGD 1 million or 50% of annual operating expenses); and issuers must maintain redemption mechanisms allowing holders to redeem at par value within five business days.

Stablecoins meeting all MAS framework requirements may use the designation "MAS-regulated stablecoin" — a significant trust signal for institutional and retail users. By 2026, several stablecoin issuers had obtained MAS regulated stablecoin designation, including both new Singapore-native issuers and established global issuers who established Singapore-regulated entities to access the MAS label.

MAS introduced strict retail protection measures for crypto in 2022, following a period of aggressive retail marketing by crypto platforms in Singapore. These measures significantly restrict how DPT service providers can market to and serve retail customers in Singapore.

Prohibited activities for DPT licensees: advertising crypto services in public areas (ATMs, bus shelters, train stations, shopping centres); social media advertising targeting retail audiences; providing credit facilities or margin financing to retail customers for crypto purchases; facilitating payment account funding of crypto purchases via credit cards. These restrictions do not apply to institutional or accredited investor clients.

Required measures: all retail customers must complete a customer risk awareness assessment before accessing DPT services, confirming they understand the risks of crypto investments; retail leverage is restricted; crypto derivatives require MAS approval as capital markets products. These measures reflect MAS's deliberate policy of making Singapore a hub for institutional and sophisticated crypto operations, while limiting speculative retail exposure.