Singapore Digital Token Licensing Explained

When navigating Singapore digital token licensing, the set of rules that control how digital tokens are issued, traded and serviced in Singapore. Also known as crypto token licensing SG, it forms the backbone of the nation’s crypto ecosystem.

The Monetary Authority of Singapore, the central bank and financial regulator administers the regime through several layers. The core legislative piece is the Payment Services Act, a flexible law that classifies digital token services into distinct license tiers. Tokens that function as stablecoins fall under the “major payment token” category, meaning they must meet strict capital and risk‑management standards. In practice, a token issuer or exchange first determines which tier applies, then prepares the required AML/KYC policies, governance documents and technology audits before filing the application.

Singapore digital token licensing isn’t just paperwork; it shapes how businesses operate day‑to‑day. Tier 1 licences cover simple wallet services, while Tier 3 targets full‑scale exchanges and custodians. Applicants need to submit a detailed business plan, proof of sufficient capital, and evidence of robust anti‑money‑laundering controls. The regulator also conducts on‑site inspections and can request additional technical reports on smart‑contract security. For stablecoin projects, the MAS demands transparent reserve‑backing mechanisms and regular public attestations, ensuring users can trust the token’s peg.

Key components of Singapore's token licensing framework

Beyond the PSA, the upcoming amendments to the Financial Services and Markets Act (FSMA) will tighten reporting duties for token‑related activities, especially those involving cross‑border fund flows. This means crypto firms must integrate real‑time transaction monitoring tools and keep detailed logs for at least five years. The licensing process has become more digital‑friendly: the MAS now offers an online portal where applicants can upload documents, track review stages, and receive electronic approvals within weeks if everything checks out. Early‑stage projects often benefit from the MAS’s sandbox program, which allows limited‑scope testing under relaxed regulations before committing to full compliance.

Understanding these layers helps you avoid costly delays and penalties. The post collection below dives into real‑world exchange reviews, airdrop safety checks, and deeper analyses of how Singapore’s rules compare to other jurisdictions. Whether you’re launching a new token, expanding an exchange, or simply keeping up with regulatory shifts, the articles that follow will give you actionable insights and up‑to‑date guidance.