The Monetary Authority of Singapore (MAS) has granted a temporary licensing exemption to a number of cryptocurrency companies operating in the country under the new Payment Services Act (PS Act). The move gives eligible firms a six-month grace period to continue providing certain services while transitioning into the new regulatory framework.
Among the companies identified as benefiting from the exemption are major industry names such as Binance, Coinbase, Gemini, Bitstamp, Luno, Upbit, and Wirex. MAS made clear, however, that these firms are not yet licensed under the PS Act for the specified services. Instead, they are being allowed to continue operations for a limited period because they were already conducting business before the law came into effect and had notified the regulator accordingly.
How the Payment Services Act applies to crypto firms
Singapore’s PS Act came into force on Jan. 28 and introduced a formal regulatory regime for payment service providers, including businesses involved in digital assets. The law groups “specific payment services” into six categories: account issuance, domestic money transfer, inward cross-border money transfer, merchant acquisition, e-money issuance within a defined threshold, and digital payment token services. Crypto-related businesses fall under that last category.
By placing crypto service providers within a broader payments framework, Singapore signaled that digital asset activity would be regulated as part of mainstream financial services oversight rather than left outside formal supervision. For firms already operating in the jurisdiction before the PS Act started, the first key compliance step was notification to MAS.
MAS emphasized that only entities that complied with the notification requirement could rely on the temporary exemption. Companies that failed to notify the regulator are considered to be in breach of the new rules. According to the authority, those entities are neither licensed nor exempt, meaning they are not permitted to provide the covered payment services, including crypto-related services, under the transitional arrangement.
Six months for digital payment token services
Under MAS guidance, businesses providing digital payment token services can continue operating without a license for six months from the commencement of the Act, with the grace period ending on July 28. That transition window is shorter than the one granted to some other payment service categories under the PS Act.
For other types of services defined in the legislation, companies may continue operating without a license for 12 months from the start of the Act, or until Jan. 28, 2021. This distinction highlights the regulator’s structured approach: while the law creates an immediate compliance obligation, it also allows firms time to adapt to a new licensing system.
The framework is particularly relevant for exchanges, custodians, and payment-related crypto businesses seeking to maintain uninterrupted service in Singapore while preparing applications, internal controls, and operating procedures to meet the regulator’s expectations.
Which companies were named
The list of crypto companies that must comply with the PS Act by July 28 includes Binance Asia Services, Bitcoin Exchange, Bitcross, Bitstamp, Coinbase, Coincola Singapore, Kryptos-x, Luno, Payward, Quoine, Ripple Labs Singapore, Upbit Singapore, and Zipmex. These firms fall within the scope of the new law as providers of digital payment token services.
MAS also identified firms that are able to provide other services in addition to crypto-related ones. That group includes Bitgo Singapore, Gemini Trust Company, Ledgerx, Paxos Global, and Wirex. Their presence on the exemption list underlines how the PS Act affects a broad range of business models, from trading platforms and custody providers to firms with cross-border or hybrid payment offerings.
Although the exemption provides breathing room, it should not be mistaken for regulatory approval. MAS explicitly stated that these entities remain outside the category of fully licensed providers during the transition period. In other words, the exemption is a temporary bridge, not a substitute for compliance.
What ends the exemption
MAS clarified that the exemption will stop after the specified period expires. It may also end earlier if a company submits a license application under the PS Act and that application is approved, rejected, or withdrawn. This means the exemption is tightly linked to the transition process and does not grant firms an open-ended ability to operate without formal authorization.
That approach reflects a regulatory balance. On one hand, Singapore avoided forcing existing companies to halt business immediately when the new law took effect. On the other, it preserved a clear timeline for firms to move toward full licensing or face the end of their temporary operating status.
For the crypto sector, the policy is significant because it demonstrates how a major financial hub can introduce stricter oversight without causing an abrupt market dislocation. Rather than treating digital asset companies as entirely separate from traditional payment businesses, the PS Act brings them into a common supervisory structure with defined obligations and transition deadlines.
Why the decision matters
The six-month exemption for crypto firms shows that Singapore is taking a measured but firm approach to digital asset regulation. The country is not granting blanket approval to exchanges and crypto service providers; instead, it is allowing them limited time to continue operating while they work through the licensing process.
For companies such as Binance, Coinbase, Gemini, Bitstamp, Luno, Upbit, and Wirex, the arrangement offers continuity during a period of legal and operational adjustment. For the broader market, it sends a signal that Singapore intends to support innovation while maintaining formal regulatory standards.
Ultimately, the MAS framework underscores a core principle: temporary exemptions are designed to facilitate transition, not avoid oversight. As the grace period runs toward July 28 for crypto-related services, affected firms face a clear compliance path under one of Asia’s most closely watched digital asset regulatory regimes.