While Singapore used to be hailed as the next crypto hub, especially in the APAC region, the tiny island nation has taken a more conservative approach in the last few years. However, this does not mean that Singapore has closed its doors to Web3.
In fact, while Singapore has maintained stringent regulation around cryptocurrency-related activities, it has continued to strive for active, cautious progress in leveraging blockchain technology, especially when it comes to retail users.
One hurdle most crypto companies have to overcome in Singapore is approval from the MAS (Monetary Authority of Singapore) in the form of a Major Payments Institutions License.
As part of the nation’s holistic regulation of emerging trends in fintech, it introduced the Payment Services (PS) Act in 2019, providing a forward looking and flexible framework for industry players.
To obtain the license, virtual asset service providers are required to put controls in place to ensure proper due diligence, suitable solicitation, and adequate risk disclosure.
Coming into effect in 2020, the act has since granted licenses or in-principle approval for such licenses to 461 companies, of which 19 provide cryptocurrency-related services at the time of writing (6/7/23).
Crypto Companies With a Major Payments Institution License in Singapore
1. FOMO Pay
The first company to receive such a license from the MAS was Fomo Pay, a local financial technology company that specializes in providing mobile payment solutions. The company offers a range of services and products to businesses, enabling them to accept various mobile payment methods and cater to the evolving consumer preferences in the digital payment space.
Through their platform, they aimed to simplify and streamline the payment process for both Web2 and Web3 businesses, enabling more than 10,000 merchants and financial institutions across Asia and Africa.
The platform received its Major Payment Institution License for domestic money transfer, cross-border money transfer, merchant acquisition, and digital payment token services on the 1st of September 2021.
Also Read: Where To Spend Your Crypto in Singapore
2. DBS Vickers Securities
DBS Vickers Securities is a popular Singapore-based securities and brokerage firm and a subsidiary of DBS Bank, one of the largest financial institutions in South-East Asia.
DBS Vickers providers a range of investment and trading services to both individual and institutional clients in multiple markets, including Singapore, Hong Kong, China, Indonesia, Thailand, and The United States.
The platform received its Major Payment Institution license for Digital Payment Token Services on the 1st of October 2021.
3. Digital Treasures Centre (DTC Pay)
Digital Treasures Centre is a digital payments company that leverages blockchain technology to patchwork system-built traditional infrastructure.
Today, they provide digital payment solutions for businesses around the world with multi-currency swap, online payments, in-store payments and crypto payments in a single solution that helps individuals and businesses to conduct value transfers in a seamless and efficient way.
The platform received its Major Payment Institution License for account issuance, domestic money transfer, cross-border money transfer, merchant acquisition, E-money issuance, and digital payment token services on the 2nd of August 2022.
4. Independent Reserve
Independent Reserve is the first crypto exchange to operate a licensed crypto exchange for all investors in Singapore, receiving its license alongside DBS Vickers.
Independent Reserve describes itself as a pro-regulation exchange with a focus on trust and security, and has a geographical focus is on Australia, New Zealand. and Singapore. Citizens from 30+ countries are permitted to join.
The platform received its Major Payment Institution License for account issuance, domestic money transfer, cross-border money transfer, and digital payment token services on the 1st of October 2022.
5. Hako Technology (CoinHako)
Coinhako is a Singapore-based cryptocurrency exchange and digital wallet provider that allows users to buy, sell, and store a variety of cryptocurrencies.
The platform aims to provide a user-friendly and secure platform for individuals to engage in cryptocurrency trading and transactions.
Coinhako received its Major Payment Institution License for digital payment token services on the 6th of May 2022.
6. Revolut
Revolut is a financial technology company that offers a range of digital banking services and products, best known for its prepaid Visa card, which can be used for overseas payments.
It was founded in 2015 and is headquartered in London, United Kingdom. Revolut’s primary focus is on providing innovative and user-friendly solutions for managing money and making payments.
The platform received its Major Payment Institution License for account issuance, domestic money transfer, cross-border money transfer, merchant acquisition, E-money issuance, and digital payment token services on the 2nd of August 2022.
7. Sparrow Tech
Sparrow describes themselves as a bespoke digital asset solutions company that endeavors to comply with the highest regulatory and cybersecurity standards. The platform was acquired by Temasek-backed Amber Group in late 2022.
The platform received its Major Payment Institution License for digital payment token services on the 1st of August 2022.
Also Read: Did MAS-licensed Sparrow Exchange Commit ICO Fraud?
8. Paxos Global
Paxos, is a financial technology company that specializes in providing blockchain-based solutions for the financial industry. Currently, it provides cryptocurrency brokerage, asset tokenization, and settlement services.
The company, best known for its USDP stablecoin, aims to bridge the traditional financial system with blockchain technology to bring increased efficiency, transparency, and trust to financial transactions.
The platform received its Major Payment Institution License for cross-border money transfer and digital payment token services on the 2nd of November 2022.
9. MetaComp
MetaComp is a Singapore-based cryptocurrency exchange that offers a full suite of digital asset offerings, including OTC and exchange trading, fiat payment gateway, digital asset custody, prime brokerage, and asset management.
Founded in 2018 under parent company MetaVerse Green Exchange, MetaComp is built on the cloud and powered by the Nasdaq trading engine.
The platform received its Major Payment Institution License for cross-border money transfer and digital payment token services on the 1st of December 2022.
10. Crypto.com
Crypto.com is a leading cryptocurrency exchange with more than 80 million users worldwide, supporting over 250 cryptocurrencies and 20 fiat currencies.
The exchange also offers other services, including the crypto.com visa card for instant crypto payments and bought the naming rights to the Crypto.com Arena, previously known as Staples Centre.
The platform received its Major Payment Institution License for account issuance, domestic money transfer, cross-border money transfer, E-money issuance, and digital payment token services on the 2nd of August 2022.
11. Circle
Circle is a global payments firm, most known for their stablecoin USDC. Their Singapore entity was granted a full license by the MAS, shortly after their office opening in May this year.
The company also offers enterprise solutions such as digital asset management & on and off ramp services.
The platform received its Major Payment Institution License for account issuance, domestic money transfer, cross-border money transfer, and digital payment token services on the 2nd of August 2022.
12. XFERS (StraitsX/FAZZ)
StraitsX, as part of the FAZZ ecosystem, is a payments infrastructure company for digital assets that helps users on and off ramp their money. Most notably, they are the company behind the xSGD and xIDR stablecoins.
The company is also part of MAS’ digital money pilot scheme alongside other institutions such as Grab and Amazon.
The platform received its Major Payment Institution License for E-money issuance in 2019.
Companies That Have Obtained a Standard Payment Institution License in Singapore
Although many major cryptocurrency companies apply for Major Payment Institution Licenses (MPI) , there also exists a Standard Payment Institution License (SPI) , which allows companies to conduct similar services to the former license.
However, SPI licenses have a maximum threshold on their services as outlined in the PS Act, including:
- SGD$3 million monthly transactions for any payment services (except for E-money, account issuance and money-changing services)
- SGD$6 million monthly transactions for two or more payment services (except for E-money, account issuance and money-changing services)
- SGD$5 million of daily outstanding E-money
With that said, only two companies offering cryptocurrency-related services in Singapore currently hold a Stand Payment Institutions License
1. BHOP Consulting (BHEX)
BHEX, a financial digital asset trading platform under parent company BHOP consulting, offers cryptocurrency exchange, custody, and electronic payment services.
The platform received its Standard Payment Institution License for digital payment token services on the 19th of August 2022.
2. Triple A Technologies
Triple A technologies describes itself as a safe and easy-to-use crypto payment gateway that enables businesses to accept crypto payments.
The company was founded in 2017, and allows businesses from all industries to leverage blockchain technology “without being exposed to volatility risk or having to handle or convert digital currencies.”
The platform received its Standard Payment Institution License for domestic money transfer, cross-border money transfer, merchant acquisition, and digital payment token services on the 30th of November 2021.
Companies That Have Obtained In-Principle Approval in Singapore
Prior to getting a full approval, companies can also be granted an In-Principle approval for their licenses, which as the name implies, is a temporary stage in the application period for companies applying for their license.
During the in-principle approval stage, the applicant is typically required to fulfill specific conditions set by the MAS, which may include meeting capital requirements, demonstrating robust anti-money laundering and countering the financing of terrorism (AML/CFT) controls, having appropriate corporate governance structures, and implementing effective risk management frameworks.
The applicant must also provide detailed business plans and operational processes to ensure compliance with regulatory guidelines.
During this period, companies are typically granted conditional approval to proceed with the activities related to obtaining a license.
1. Ripple
Ripple is a blockchain-based digital payment network and protocol best known for their native cryptocurrency, XRP.
First launched in 2012, the company saw a staggering increase in their On-Demand Liquidity services last year, and has stated that volume is especially surging in the Asia-Pacific region.
The platform received an In-Principle Approval for a Major Payments Institution License on the 22nd of June 2023.
Also Read: Ripple APAC Receives In-Principle Approval
2. Sygnum
Sygnum Singapore is a digital asset bank and specialist with roots in both Singapore and Switzerland. The platform offers brokerage, custody, lending, tokenization, and asset management services.
Currently, its portfolio consists of regulated banking services, across multiple cryptocurrencies including Bitcoin, Ethereum, and XRP.
The platform received an In-Principle Approval for a Major Payments Institution License on the 8th of March 2022.
3. Blockchain.com
Blockchain.com is a London-based cryptocurrency company that offers a full suite of cryptocurrency services. This includes a cryptocurrency wallet, exchange services, blockchain explorer and analytics platform, various institutional services and more.
The platform received an In-Principle Approval for a Major Payments Institution License on the 12th of October 2022.
4. Coinbase
Coinbase is one of the largest and most well-known cryptocurrency exchanges and digital asset platforms in the world. It was founded in 2012 and is headquartered in San Francisco, California, United States.
Coinbase provides a range of services to buy, sell, store, and use various cryptocurrencies.
The platform received an In-Principle Approval for a Major Payments Institution License on the 11th of October 2022, just one day before blockchain.com.
Companies That Have Withdrawn Their License Application in Singapore
1. Luno
Luno is a cryptocurrency exchange and digital asset platform that allows users to buy, sell, store, and trade cryptocurrencies, primarily focusing on providing services in emerging markets and has gained popularity in regions such as Africa and Southeast Asia.
While the company had previously filed for a license in Singapore, it informed the MAS in 2023 that it will stop providing services to customers in Singapore and have withdrawn their application.
2. Hodlnaut
Hodlnaut is a Singapore-based cryptocurrency platform that offers a variety of services related to earning interest on cryptocurrencies through lending and borrowing.
Following the fallout of $UST and TerraForm Labs, Hodlnaut informed its users that it would be placed under Judicial Management, despite claiming to have no significant exposure.
The now-defunct platform has since suspended all services, and informed the Monetary Authority of Singapore that it would withdraw its license application late last year.
3. Genesis (Unconfirmed)
Genesis is a digital assets focused financial services firm for institutional investors under Digital Currency Group, which is also the parent company of Luno.
Despite Genesis APAC achieving in-principle approval in June 2022, Genesis has since filed for bankruptcy due to the implosions of crypto companies 3AC as well as FTX.
While their in-principle approval has not been officially withdrawn, there is little likelihood that Genesis APAC will continue to function in the region.
Also Read: Singapore To Tighten Retail Staking Services
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Chain Debrief
