Singapore MAS Amends Payment Services Act for Digital Asset Firms
The Monetary Authority of Singapore announces amendments to the Payment Services Act, introducing enhanced requirements for digital payment token services.
The Monetary Authority of Singapore (MAS) has announced significant amendments to the Payment Services Act (PSA), introducing enhanced regulatory requirements for firms providing digital payment token (DPT) services.
Key Amendments
Expanded Scope - DPT custody services now require licensing - NFT platforms with payment functionality captured - Cross-border DPT services face additional requirements
Enhanced Capital - Major Payment Institutions: SGD 250,000 → SGD 500,000 - Standard Payment Institutions: No change - DPT service providers: New tiered requirements
Operational Requirements - Local director requirement for DPT licensees - Enhanced technology risk management - Mandatory third-party audits
Consumer Protection - New disclosure requirements - Enhanced complaint handling - Restrictions on retail marketing
Timeline
The amendments take effect in phases: - Phase 1 (July 2026): Capital and governance - Phase 2 (January 2027): Full operational compliance
Singapore Market Position
Despite enhanced requirements, Singapore remains attractive due to: - Strong regulatory reputation - Access to Asian markets - Robust financial infrastructure - Skilled talent pool
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Zitadelle AG assists with MAS license applications and ongoing compliance.
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