MAS drives innovation in the crypto sector

The Central Bank of Singapore, also known as the Monetary Authority of Singapore (MAS), has shaped the country into a hub for financial innovation by standing as a global leader in regulating cryptocurrency exchanges and digital assets. With over 200 licensed payment institutions and a promising regulatory framework, Singapore is setting the pace for fintech growth and digital transformation.

Under the Payment Services Act (PS Act), introduced in 2019, MAS regulates cryptocurrency exchanges through two main types of licenses: Major Payment Institution (MPI) and Standard Payment Institution (SPI). The framework ensures rigorous risk management, consumer protection and compliance with anti-money laundering and counter-terrorist financing standards. As of 2024, MAS has received over 250 digital payment token (DPT) service applications, which indicates the growing interest in Singapore’s crypto-friendly environment.

The regulatory framework is designed to balance innovation with risk mitigation. Recent updates expanded the scope of regulated activities, targeting emerging risks in the rapidly evolving crypto sector. MAS has implemented measures to safeguard consumers, including mandatory asset segregation and enhanced protections against insolvency risks for platform users. Additionally, new rules aim to address concerns regarding market manipulation, unfair trading practices and misleading conduct.

Stablecoins have also been a key focus for MAS, which finalized a framework in 2024 to regulate their value stability. This positions Singapore as a leader in fostering a secure and trustworthy stablecoin market, paving the way for these assets to be used more widely in payments.

Beyond regulation, MAS drives innovation through initiatives like Project MindForge, which explores opportunities and risks in generative AI, and Gprnt, an ESG-focused data platform designed to combat greenwashing. In cross-border payments, MAS has linked Singapore’s PayNow with systems like Thailand’s PromptPay and Malaysia’s DuitNow, making remittances cheaper and faster, with plans to pilot integration with China’s e-CNY.

Gprnt improves ESG data quality by automating collection and verification, helping financial institutions fund green projects and combat greenwashing. For AI, MAS co-created governance frameworks like the transparency (FEAT) principles and Veritas assessment to ensure responsible use. To support innovation, MAS announced S$100 million in new funding for AI and quantum technologies, reinforcing Singapore’s fintech leadership.

Singapore’s fintech growth has been rapid, with the number of fintech firms increasing from fewer than 50 in 2015 to over 1,400 today. The Singapore FinTech Festival, a flagship event attracting participants from over 130 countries, further strengthens the city-state’s reputation as a global financial hub.