Singapore Approves 37 Crypto Firms From Nearly 300 License Applications

Strict Filter for Digital Asset Operators

Singapore has approved 37 digital payment token service providers out of nearly 300 license applications submitted since its crypto regulatory framework launched in 2020. The Monetary Authority of Singapore disclosed the approval rate through Chairman Gan Kim Yong's parliamentary response addressing virtual asset service provider oversight.

The figures underscore Singapore's position as one of Asia's most selective jurisdictions for crypto licensing. The city-state regulates virtual asset service providers under its digital payment token service provider framework, requiring operators to obtain formal licenses and implement systems to manage operational and compliance risks.

According to Gan, the majority of applications were either rejected by MAS or withdrawn after applicants concluded they could not satisfy the regulator's requirements. The authority has not disclosed a detailed breakdown of rejection reasons or withdrawal timelines.

Active Supervision and Enforcement

MAS maintains ongoing supervision of licensed firms and has taken regulatory action against operators that failed to meet its standards. The regulator did not specify the number of enforcement actions or the nature of violations in the parliamentary reply.

The authority monitors emerging financial crime risks tied to digital assets and updates its regulatory requirements as conditions evolve. The Financial Action Task Force, the global standard-setter for anti-money laundering and counter-terrorism financing, has recognized Singapore's effectiveness in regulating digital payment token service providers.

Singapore's framework requires crypto firms to implement robust anti-money laundering controls, segregate customer assets, and maintain minimum capital levels. The licensing process involves detailed assessments of management teams, business models, technology infrastructure, and compliance capabilities.

Regional Context for Crypto Regulation

Singapore's selective approach contrasts with varying regulatory stances across Asia. Hong Kong introduced a licensing regime for virtual asset trading platforms in 2023, while jurisdictions including Japan and South Korea have operated established frameworks for several years. Dubai and Abu Dhabi have positioned themselves as crypto-friendly hubs with streamlined licensing processes.

The low approval rate in Singapore reflects the regulator's focus on institutional-grade operators and its cautious stance following high-profile crypto failures globally. Major licensed firms in the city-state include established financial institutions and well-capitalized crypto-native companies.

MAS has emphasized that its regulatory approach balances innovation support with consumer protection and financial stability. The authority has stated it does not promote retail participation in crypto trading and maintains strict advertising restrictions for licensed operators.

The 37 licensed firms operate in a market where crypto adoption among institutional investors and family offices has grown, particularly for Bitcoin and Ethereum exposure through regulated channels. Singapore's legal clarity and tax treatment have attracted crypto firms seeking regional headquarters despite the demanding licensing requirements.

The parliamentary disclosure arrives as global regulators continue refining crypto oversight frameworks. The European Union's Markets in Crypto-Assets regulation took effect in 2024, while the United States remains divided on comprehensive federal legislation. Asian financial centers are watching Singapore's regulatory outcomes as they develop their own approaches to digital asset supervision.