Fintech Regulations Singapore 2025: What Every Fintech Founder Must Know
Quick Summary
Singapore's fintech sector operates under a complex regulatory framework with over 1,300 firms navigating multiple laws rather than a single unified regulation. MAS leads oversight through specialized licenses including Payment Services Act (PSA) for digital payments, Securities and Futures Act (SFA) for capital markets, and Financial Advisers Act (FAA) for robo-advisors. With 2025 bringing enhanced AI governance, stablecoin frameworks, and strengthened anti-scam measures, fintech founders must secure the right licenses, implement robust AML/CFT controls, and prepare for evolving compliance requirements to succeed in Asia's leading fintech hub.
Essential Points
Multi-License Framework: Choose between Standard Payment Institution (under S$3M monthly) or Major Payment Institution (over S$3M monthly) licenses under PSA, plus additional CMS or FA licenses based on your specific services like tokenized securities or robo-advisory
Core Compliance Pillars: Implement mandatory AML/CFT controls with Customer Due Diligence, PDPA data protection compliance, and cybersecurity measures—all scrutinized heavily by MAS and required for license approval and ongoing operations
2025 Regulatory Updates: Prepare for new AI governance standards, single-currency stablecoin regulations requiring S$1M capital, enhanced consumer protections for crypto services, and stronger anti-scam measures with 12-hour cooling periods and transaction limits
Singapore continues to lead the way as one of the world’s most advanced fintech hubs, offering a strong regulatory foundation. For founders looking to launch or scale a fintech business in Singapore, understanding the local regulatory environment is essential.
Unlike in some jurisdictions, fintech in Singapore is not governed by a single, unified law. Instead, a range of legislation may apply depending on your specific business model. Whether you're building a crypto platform, a payments company, or a digital advisory service, knowing which laws apply to your operations is the first step toward compliance and success.
This guide breaks down the most important fintech regulations in Singapore for 2025, including licensing routes, compliance requirements, and key updates from the Monetary Authority of Singapore (MAS).
Why Singapore Is a Fintech Regulatory Leader
With more than 1,300 fintech firms operating locally, Singapore is widely recognized as a global leader in the fintech industry. It offers consistent regulation, strong government support, and a national strategy that encourages innovation.
In 2023, Singapore accounted for 21% of all fintech deals in the Asia-Pacific region, showing just how active its fintech scene has become. The Monetary Authority of Singapore (MAS) plays a central role by providing a regulatory framework that supports financial innovation across the financial services sector while safeguarding systemic stability.
Several factors contribute to its leadership position:
Clear, proactive regulation: MAS provides early guidance through public consultations and licensing frameworks tailored to fintech models.
Government-led digital infrastructure: Initiatives like SGFinDex enable secure data sharing between banks, insurers, and fintech firms.
Support for green and digital finance: Programs such as the Green Finance Action Plan and digital banking licenses support emerging verticals.
Structured regulatory engagement: Tools like the FinTech Regulatory Sandbox and the Financial Sector Technology and Innovation (FSTI) Scheme allow firms to test new models under MAS oversight.
Regional scalability: A stable legal system, bilingual workforce, and ASEAN market access make Singapore a launchpad for regional growth. For long-term planning, fintech firms can benefit from understanding how to expand their business to Singapore strategically and sustainably.
The Regulatory Web Governing Fintech in Singapore
Fintech in Singapore isn't governed by a single law but is regulated based on the specific services a company provides. The Monetary Authority of Singapore (MAS) serves as the central regulator, but several other statutory bodies, government agencies, and laws may also apply.
Fintech companies must assess their business models carefully to determine which licensing requirements and compliance obligations they fall under. The type of services offered (whether payments, advisory, lending, or token-based platforms) will dictate which regulatory regimes apply.
The key legislation relevant to fintech businesses includes:
Payment Services Act 2019 (PSA): Regulates payment service providers, digital payment token (DPT) services, e-wallets, money transfers, and merchant acquisition.
Securities and Futures Act 2001 (SFA): Applies to capital markets products, including security tokens and derivatives. Firms offering investment or trading platforms may need a Capital Markets Services (CMS) licence under this Act.
Financial Advisers Act 2001 (FAA): Covers entities providing financial advisory services, including robo-advisory platforms.
Banking Act 1970: Applies to digital banks and lending platforms that take deposits or engage in banking business, such as offering savings accounts or issuing credit. This is the key legislation for any company seeking a digital banking license in Singapore that fintech firms are required to obtain to operate legally.
Moneylenders Act 2008: Regulates businesses engaged in moneylending activities not covered under banking regulations.
Companies Act 1967: Governs company registration, corporate governance, and business structure requirements.
Currency Act 1967: Regulates currency issuance and usage in financial transactions involving digital assets.
Insurance Act 1966: Applies to insuretech companies offering insurance or underwriting services.
Cybersecurity Act 2018: Addresses protection of critical information infrastructure and data security, particularly for fintech platforms handling sensitive financial data.
Fintech firms must also consider cross-sector regulations such as anti-money laundering (AML) laws, data privacy requirements under the Personal Data Protection Act (PDPA), and MAS guidelines on technology risk.
Understanding this regulatory web is essential for selecting the correct licensing path and ensuring compliance from the outset. Misclassifying the nature of a fintech product or service can lead to delays, enforcement action, or loss of investor confidence.
Fintech Licensing in Singapore: Which One Do You Need?
The Monetary Authority of Singapore (MAS) offers different licensing frameworks depending on whether the Fintech company deals with payments, capital market products, digital tokens, or a combination of services.
Understanding your fintech licensing path is critical, especially in a jurisdiction where business licensing varies by service type and risk category. It determines the firm’s legal obligations, regulatory scope, and long-term compliance requirements. Below are the key licensing pathways that fintech founders should understand.
Payment Services Act (PSA)
The Payment Services Act regulates a wide range of activities, including digital payment token services, e-money issuance, domestic and cross-border money transfers, merchant acquisition, account issuance, and other types of payment transactions.
There are two primary types of licenses under the PSA:
Standard Payment Institution (SPI) Licence
This is for businesses with a lower transaction volume. It is suitable for startups or smaller entities offering basic payment services that do not exceed MAS’s defined thresholds.Major Payment Institution (MPI) Licence
This licence is for companies conducting payment services that exceed certain thresholds. Businesses that process over S$3 million per month in any single payment service or over S$6 million per month across multiple services are required to obtain an MPI licence.
Both SPI and MPI license holders must meet MAS’s compliance expectations, including capital requirements, safeguarding of customer funds, and adherence to anti-money laundering and counter-terrorism financing (AML/CFT) obligations.
Financial Adviser Licence (FA Licence)
Fintech businesses that provide investment recommendations, financial planning tools, or advisory services must obtain a Financial Adviser Licence under the Financial Advisers Act. This applies to platforms offering:
Robo-advisory models
Investment comparison engines
Promotion of insurance or unit trusts
Companies must demonstrate product knowledge, risk disclosures, and proper advisory frameworks. Certain exemptions may apply if the activity is incidental or conducted through a CMS licence, but MAS assesses this on a case-by-case basis.
Capital Markets Services (CMS) Licence
Platforms engaged in tokenized securities or fund management activities must hold a CMS licence under the Securities and Futures Act. It is required for fintech companies that deal with capital market products. This includes platforms offering:
Tokenized securities
Robo-advisory services
Fund management
Trading or dealing in investment products
A company must hold a CMS licence if it enables investors to buy or trade securities, units in collective investment schemes, or derivatives, regardless of whether these are offered through traditional instruments or blockchain-based assets.
DPT or CMS: Understanding the Classification
Fintech companies offering services related to cryptocurrency must determine how their token is classified. If the token is used primarily as a means of payment, it falls under the definition of a digital payment token (DPT) and is regulated under the PSA. If the token represents ownership of an asset or provides investment returns, it may be considered a capital markets product under the SFA, requiring a CMS licence.
For example:
Ripple obtained a licence to provide DPT services under the PSA.
Circle, the issuer of USDC, also received an MPI licence to offer digital token-related services.
A tokenized real estate platform that offers fractional ownership of properties would likely need a CMS licence due to its investment nature.
Core Compliance Pillars for Fintech Founders
Securing a licence is only the first step. Fintech companies in Singapore must maintain strict compliance with regulatory obligations to operate legally and sustainably. MAS places a strong emphasis on three core areas: anti-money laundering and countering the financing of terrorism (AML/CFT), personal data protection, and cybersecurity.
These areas are non-negotiable. Failure to comply can result in regulatory action, loss of customer trust, and reputational damage.
Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)
MAS requires all regulated entities to implement robust AML/CFT frameworks. Fintech companies must assess risks, monitor customer behavior, and report suspicious activity.
Key requirements include:
Customer Due Diligence (CDD): Companies must verify a customer’s identity, background, and source of funds. This involves collecting personal data, verifying documentation, and assessing risk profiles.
Enhanced Due Diligence (EDD): When dealing with high-risk clients (such as politically exposed persons (PEPs) or individuals from countries flagged for elevated risk) fintech companies are required to carry out extra layers of verification and scrutiny. This may include senior management approval, reference checks, and income verification.
Ongoing Monitoring: Firms must regularly review customer transactions and update records. Any unusual or suspicious activity must be reported to the Commercial Affairs Department via a Suspicious Transaction Report (STR).
Internal Governance: A qualified compliance officer must be appointed to oversee AML/CFT obligations. Companies must also implement staff training and regular audits.
AML/CFT compliance is one of the most scrutinized areas in fintech regulation. A weak framework may delay licensing approval or trigger regulatory penalties after launch. Firms are also expected to safeguard customer funds in regulated accounts, which often requires opening a corporate bank account as part of the onboarding process.
Personal Data Protection Act (PDPA) Compliance
Fintech companies that collect, store, or process customer data are required to comply with the Personal Data Protection Act (PDPA). This includes all digital platforms that onboard users, provide financial services, or conduct KYC processes.
Key obligations under the PDPA include:
Consent and Purpose Limitation: Customers must be informed about what data is collected and how it will be used. Consent must be obtained before any collection takes place.
Access and Correction: Customers must be allowed to view their personal data and request corrections.
Accuracy and Retention: Firms must ensure all collected data is accurate and must dispose of data once it is no longer needed.
Transfer and Protection: Personal data must not be transferred outside Singapore unless adequate safeguards are in place. Companies must implement security measures to prevent unauthorized access or breaches.
Openness and Accountability: A written data protection policy should be in place. Staff must be trained, and a Data Protection Officer (DPO) must be appointed.
Compliance with the PDPA is essential for trust and regulatory approval, especially for companies handling sensitive financial or identity information.
Cybersecurity and Technology Risk
Fintech platforms are frequent targets for cyberattacks. MAS has introduced several regulations to raise baseline cybersecurity standards and ensure technology risk is properly managed.
Applicable requirements include:
Cybersecurity Act 2018: Firms designated as critical information infrastructure (CII) must comply with strict reporting, audit, and resilience obligations.
MAS Technology Risk Management Guidelines: These provide best practices for IT governance, access control, incident response, and vendor management.
MAS Notices on Cyber Hygiene: All financial institutions must secure administrative accounts, implement regular patch management, and deploy malware protection.
Other Related Laws: The Computer Misuse Act and the Copyright Act provide additional legal coverage for unauthorised access, tampering, and software integrity.
Technology risk is a key part of MAS’s regulatory assessment. Fintech firms must demonstrate that their systems are secure, resilient, and governed by strong internal controls.
MAS Fintech Sandbox: Testing Ground for Regulatory Compliance
Singapore’s Fintech Regulatory Sandbox provides a controlled environment for fintech companies to test new financial products and services while enjoying temporary regulatory flexibility. Launched by the Monetary Authority of Singapore (MAS) in 2016, it is designed to promote innovation without compromising financial stability or consumer protection.
Rather than requiring full compliance from day one, the sandbox allows eligible businesses to operate with selected regulatory requirements relaxed for a fixed testing period.
Who Qualifies and What MAS Looks For
Applicants can include licensed financial institutions, fintech startups, or professional services firms. To be eligible, the proposed solution must:
Be innovative or use existing technology in a novel way
Solve a specific problem or offer clear benefits to the financial industry
Be ready for live testing
Have a credible deployment plan post-sandbox
MAS evaluates whether the risks are manageable and whether the company can exit into full compliance if the test is successful.
For fintech professionals moving to Singapore to lead or co-found startups, the Tech.Pass program is worth considering. It’s designed for experienced tech founders and executives, offering greater flexibility to operate, invest in, or mentor fintech ventures while residing in Singapore.
How the Sandbox Works
The sandbox process involves the following steps:
Application Review: MAS provides preliminary feedback within 21 working days.
Evaluation: MAS assesses the proposal in detail, often in consultation with the applicant.
Experimentation Phase: If approved, the business may begin live testing with limited customers under defined regulatory relief.j
Exit or Extension: After the testing period (usually six to nine months), the entity must either apply for a full licence or cease operations. Extensions are reviewed on a case-by-case basis.
Post-Sandbox Compliance: Full compliance is required for continued operations after exiting the sandbox.
Participation does not guarantee future licensing approval, but it allows companies to demonstrate feasibility and compliance readiness early on.
When Sandbox Participation Makes Sense
The sandbox is especially valuable for:
Fintechs operating in grey regulatory areas (e.g., AI-based credit scoring, embedded finance, tokenized products)
Companies whose services fall outside existing MAS categories
Startups looking to validate their risk controls before going to market
While MAS also offers a Sandbox Express track for low-risk business models (such as certain payment or insurance services), most fintechs go through the standard sandbox route, which provides greater flexibility.
Real Licensing Cases
Studying recent licence approvals offers fintech founders real-world insight into what the Monetary Authority of Singapore (MAS) expects in terms of compliance, financial governance, and operational readiness. Several high-profile cases from the past two years highlight the licensing landscape for payment services, crypto, and investment platforms.
XTransfer: MPI Licence to Serve B2B Trade Payments
On January 1, 2025, China-based XTransfer received a Major Payment Institution (MPI) licence from MAS, enabling it to offer account issuance, domestic money transfer service, cross-border remittances, and e-money services in Singapore.
XTransfer focuses on serving SMEs engaged in international trade, offering payment solutions that support over 15 currencies across 200+ countries. Its Singapore operations aim to facilitate China-ASEAN trade by providing compliant, cost-efficient, and round-the-clock settlement capabilities.
The licence signals MAS’s continued support for platforms that strengthen regional financial connectivity and SME digitalisation.
Bitstamp: Crypto Licence Granted Under Stricter MAS Policies
Bitstamp received a Digital Payment Token (DPT) licence in 2024 after MAS significantly tightened its crypto licensing framework. New rules required all crypto firms serving clients from Singapore—whether local or overseas—to obtain a full licence or cease operations.
MAS publicly noted it would “generally not issue a licence” for firms with business models that posed high money laundering risks or lacked local substance. Bitstamp’s approval signals the company’s strong internal controls and regional credibility, but also serves as a reminder: approval is the exception, not the rule.
BC Payments: In-Principle Approval for MPI Licence
BC Payments Singapore, a subsidiary of Luxembourg-based Banking Circle S.A., received in-principle approval (IPA) for a Major Payment Institution (MPI) licence in 2024. The company plans to use Singapore as a regional headquarters and expand its cross-border payments operations across APAC.
An IPA means MAS is open to granting a licence, but final approval hinges on the applicant meeting post-approval conditions and avoiding adverse developments. For fintechs applying for MPI status, this two-step licensing process is a crucial consideration in operational planning.
Circle: Major Payment Institution Licence for USDC
In June 2023, Circle Internet Financial secured a Major Payment Institution (MPI) licence under the Payment Services Act. This approval allows Circle to offer USDC stablecoin services and cross-border transfers in Singapore.
MAS’s decision reflected Circle’s financial transparency, robust risk management framework, and commitment to AML/CFT compliance. The licence marks a significant step in integrating regulated stablecoin infrastructure into Singapore’s financial ecosystem.
Ripple: Digital Payment Token (DPT) Licence
Ripple obtained its DPT licence in October 2023 to offer regulated crypto-based payment solutions. MAS approved Ripple’s operations based on its strong compliance processes, governance structure, and data security protocols. The licence enables Ripple to provide cross-border crypto payments and settlement services to institutional clients.
MAS Fintech Guidelines 2025: Trends and Updates
As the regulatory environment evolves, fintech founders must not only secure the right license but also stay ahead of shifting MAS expectations. Here are the most important updates from 2023 to 2025 that every fintech business operating in Singapore should prepare for.
1. AI, GenAI, and Robo‑Advisers
MAS is actively integrating artificial intelligence into its fintech strategy, with a strong emphasis on secure, privacy-sensitive AI implementation:
2024 GenAI Cyber Risk Paper outlines threats such as deepfakes, phishing, and malware. Required safeguards include facial liveness detection, user-awareness campaigns, layered cyber defence, and AI-based threat detection.
2024 AI Model Risk Management Paper introduced standards for AI governance, risk controls, and oversight. MAS intends to expand these to all financial institutions in 2025, especially those leveraging “agentic AI” in trading or robo-advisory services.
2. Stablecoin Regulation – New Framework for Single-Currency Stablecoins (SCS)
To drive secure mainstream adoption of stablecoins, MAS is planning to regulate single-currency stablecoins with the following proposed requirements:
Backing by low-risk, liquid reserves held by licensed custodians with regular audits
Capital requirements of at least SGD 1 million or 50% of annual operating costs
Redemption at par within five business days
Mandatory white paper disclosures detailing risks, rights, and stabilisation mechanisms
Although still in draft, this marks a major step toward formal stablecoin governance.
3. Stronger Consumer Protection for DPT Services
Since October 2024, MAS has enhanced protections for digital payment token (DPT) users:
Mandatory placement of customer DPT holdings in trust or segregated accounts, separate from service provider funds, by the next business day
Daily reconciliation and secure operational controls
Disclosures on custody practices and risks
From June 2025, additional measures on risk-awareness assessments, marketing controls, leverage restrictions, and complaint frameworks will be enacted
4. Expanded Measures Against Scams in e‑Payments
In response to a 19% rise in scams through the first half of 2024, MAS has strengthened safeguards:
October 2024 Anti‑Scams Circular applies to Major Payment Institutions (MPIs), imposing:
12-hour cool-off periods on new-device logins
Default transaction limits of S$1,000 (higher limits require extra controls)
Real-time scam detection and kill-switch functionality
24/7 victim-reporting streams
December 2024 Shared Responsibility Framework requires accountability from both financial institutions and telcos. It mandates clear processes for reimbursement if both parties meet prevention standards.
5. Cyber Hygiene Strengthening
MAS has reinforced its focus on cybersecurity with updated requirements:
Elevated baseline standards under MAS Notices on cyber hygiene (e.g., account protection, patching, and malware safeguards)
Stronger internal controls for cloud infrastructure, admin accounts, and vendor management
Enhanced emphasis on safeguarding against AI vulnerabilities in cyber operations
6. Sandbox Refinements and Faster Timeframes
MAS continues to refine its sandbox framework:
21-day target for initial sandbox feedback
Greater scrutiny on lifecycle plans, impact on users, and scalability
Transparent path from sandbox testing to larger-scale deployment, reinforcing accountability and long-term alignment
What Founders Should Do Now
Anticipate AI governance demands, especially for robo-advisory and algorithmic trading use cases
Plan ahead for the stablecoin regime if token issuance is part of your model
Embed consumer protection measures early, including trust accounts and scam controls
Upgrade cyber hygiene practices to meet MAS’s expectations for fintech platforms
Approach sandbox applications with clear exit strategies, not just testing plans
Conclusion
Singapore remains one of the most attractive destinations for ventures in the financial and fintech sectors looking to scale in Asia. Its licensing framework may be rigorous, but it’s designed to reward credibility, transparency, and operational discipline.
Understanding which licences your business needs, preparing the right documentation, and avoiding common pitfalls can dramatically improve your chances of approval.