The Monetary Authority of Singapore (MAS) has informed multiple digital payment service providers that they will be granted licenses to operate in the city-state, following the in-principle approval of Australian cryptocurrency exchange Independent Reserve. Industry observers believe this solidifies Singapore's position as Asia's leading crypto hub.
MAS Moves Toward Permanent Licensing
MAS told “several” of the 170 applicants it is prepared to issue payment services licenses, provided they implement measures to meet regulatory requirements. Two applications have been rejected so far, and 30 were withdrawn due to anti-money laundering compliance failures. Independent Reserve noted it is among the first virtual asset service providers to receive such approval in Singapore.
Grace Chong, a lawyer at Simmons & Simmons, called the development “momentous” and “timely,” highlighting strong institutional interest in digital assets. “Technological change is upending finance,” she said.
Certainty for Crypto Ecosystem
Kenneth Bok, CEO of blockchain advisory Blocks, stated that MAS's move toward permanent licensing “gives certainty to many legit crypto companies who have established operations here.” Jason Davis, associate professor at Insead, described it as a “careful next step” into financial innovation, expecting more exchanges to seek approval. He emphasized that enabling exchanges is key to Singapore's business-friendly strategy for digital assets.
Experts predict an influx of crypto firms to Singapore, driven by regulatory clarity and openness. In contrast, Hong Kong has adopted stricter policies. Sumit Agarwal, professor at the National University of Singapore, noted that China's crackdown on crypto and Beijing's influence over Hong Kong create fear among investors, while Singapore's smaller economy allows faster decision-making and experimentation.
Overall, MAS's licensing framework is attracting global crypto enterprises, reinforcing Singapore's status as a premier crypto-friendly destination in Asia and beyond.