Singapore wants tokenization, institutional digital assets and payments innovation, and has become steadily less welcoming to retail crypto speculation and to firms that use the country as a base for serving customers elsewhere. If your product fits the first category, it is one of the best-run jurisdictions in the world; if it fits the second, the 2025 rules may have closed the door.
Singapore's regulatory approach
Payment Services Act: digital payment token services
Since January 2020, businesses that deal in or facilitate the exchange of digital payment tokens (DPTs), and later custody and transfer services, need a license from the Monetary Authority of Singapore under the Payment Services Act, either as a standard or a major payment institution depending on volumes. The licensing process has been selective, with many applicants withdrawing.
Retail protection after 2022
Singapore was directly affected by the 2022 failures: Three Arrows Capital was based there and Terraform Labs had been incorporated there. MAS had already, in January 2022, issued guidelines discouraging DPT service providers from marketing to the general public, which effectively ended crypto ads in public spaces, on public transport and through broad social media campaigns. Further consumer protection measures followed, including:
- segregation of customer assets held in trust;
- a risk-awareness assessment before retail customers can trade;
- no offering of lending or staking of retail customers' tokens;
- no incentives such as sign-up bonuses to retail customers.
Build these into onboarding and product flows if you serve Singapore retail users.
Digital token service providers (from June 2025)
Under the Financial Services and Markets Act, from 30 June 2025 Singapore-incorporated firms, and individuals or firms operating from Singapore, that provide digital token services only to customers outside Singapore need a license. MAS stated it would generally not grant such licenses, citing money-laundering risk. In practice, using Singapore as an unlicensed base for an offshore-only exchange or token service is no longer an option, and several firms relocated staff as a result. Development work for others is a different activity, but check where your team's roles sit, because "operating from Singapore" is the test.
Stablecoins and securities
MAS finalized a stablecoin framework in 2023 for single-currency stablecoins pegged to the Singapore dollar or a G10 currency and issued in Singapore, with reserve, redemption and disclosure requirements, and a label reserved for compliant issuers. Tokens that are capital markets products, such as security tokens, fall under the Securities and Futures Act and need a prospectus or exemption.
Tokenization: Project Guardian
MAS has run Project Guardian since 2022 with banks and asset managers, testing tokenized bonds, funds and foreign exchange on public and permissioned networks, and has published frameworks for asset tokenization. Combined with earlier work like Project Ubin, this is why so much institutional tokenization activity has a Singapore angle. See the tokenization platform guide for the architecture these pilots use.
Ecosystem and talent
Singapore hosts regional headquarters of major exchanges, custodians, market makers, protocol foundations and global banks' digital asset teams. Its strengths are institutional finance, compliance, treasury and business development; it is a convenient time zone for teams spanning Asia and Europe. The National University of Singapore and Nanyang Technological University supply strong engineers, but the local pool is small relative to demand.
Costs are high: senior engineer salaries are among the highest in Asia, and office space is expensive. Foreign professionals typically need an Employment Pass, assessed since 2023 under the COMPASS points framework, which considers salary, qualifications and the firm's workforce diversity. Many Singapore companies keep leadership, compliance and a small engineering core locally and hire developers in India, Vietnam, the Philippines or Eastern Europe.
Choosing a development partner
A Singapore-based partner is valuable when your product will be reviewed by MAS or used by a regulated financial institution: they understand MAS technology risk management guidelines, outsourcing expectations and the documentation banks require. For non-regulated engineering, regional teams elsewhere in Asia are cheaper and well practiced.
Questions to ask
- Have you built for a MAS-licensed payment institution or a Project Guardian participant? What did the technology risk review cover?
- How do you implement the retail risk-awareness assessment and customer asset segregation?
- Will any of your Singapore staff be performing token services, as opposed to development, after June 2025 rules?
- Can you meet a bank's outsourcing and data residency requirements?
For payment tokens, read the stablecoin guide; for protocol work, DeFi development. To compare regional bases, see Australia and the UAE.
Frequently asked questions
Can I run an offshore-only crypto exchange from Singapore?
Since 30 June 2025, that requires a license that MAS has said it will generally not grant. Most such operations have moved elsewhere.
Can I advertise a crypto app in Singapore?
MAS guidelines discourage DPT service providers from promoting to the general public, including on social media and in public places. Marketing is limited to your own website, app and official social channels.
Is Singapore good for tokenization startups?
Yes, particularly for institutional products, given MAS's tokenization initiatives and the concentration of banks and asset managers. Expect regulated-grade standards from partners.
Do pure software developers need a MAS license?
Writing software for others is generally not a regulated activity, but operating a service, holding customer assets or running infrastructure that facilitates token transactions can be. Confirm your status with counsel.