How the MAS Payment Services Act Changes Crypto and Digital Money Rules in 2025
What the MAS Payment Services Act means for how you send money
The Monetary Authority of Singapore (MAS) Payment Services Act, which took full effect in January 2025, created a new licensing system for companies that handle money transfers, digital wallets, and cryptocurrency. If you use PayPal, Venmo, Zelle, or any app that moves money between accounts, this law affects which companies can operate legally and what protections you get when they do.
The act does not change how you use these services day-to-day. You still send money the same way. But it does mean that any company offering payment services in Singapore—or to Singapore users—must now hold one of three licenses: a standard payment institution license, a major payment institution license, or a digital payment token service license. Companies that do not meet these requirements by the deadline have had to stop serving customers or shut down.
For you as a user, this matters because licensed companies face real oversight. They must hold customer money in segregated accounts, report to regulators, and follow anti-fraud rules. Unlicensed operators—which used to operate in gray areas—can no longer legally serve you.
Key Takeaways
- The MAS Payment Services Act requires any company handling money transfers or digital wallets to hold a government license, effective January 2025.
- Three license types exist: standard payment institution (for smaller operators), major payment institution (for larger volume), and digital payment token service (for cryptocurrency).
- Licensed companies must keep your money in separate accounts and follow anti-fraud and anti-money-laundering rules that unlicensed operators did not.
- If a company you use lost its license or never obtained one, you should move your money to a licensed alternative and report the company to MAS.
- The law does not change how you send money, but it does narrow which companies can legally offer those services.
The three license types and what they cover
A standard payment institution license is for smaller operators handling lower volumes of money. These companies can offer payment services like money transfers, bill payments, and digital wallets, but they face caps on how much money they can hold and move. Most small fintech startups and regional payment apps fall into this category.
A major payment institution license is for larger operators—think PayPal, Stripe, or regional giants. These companies handle higher volumes and can offer a wider range of services. They face stricter capital requirements and more detailed reporting to MAS, but they can serve more customers and move more money.
A digital payment token service license is specifically for cryptocurrency exchanges and platforms. This is the pathway for companies that let you buy, sell, or hold Bitcoin, Ethereum, or other cryptocurrencies. These platforms must now register with MAS, prove they have anti-money-laundering controls, and keep customer crypto in secure custody. Before 2025, many crypto exchanges operated without any Singapore license at all.
Your bank already holds a banking license, which is separate from these payment licenses. Banks can offer payment services under their banking license, so you do not need to worry about your bank suddenly becoming unlicensed. The Payment Services Act applies to non-bank payment companies.
What happens if a company does not have a license
If you discover that a payment app or digital wallet you use does not hold a valid MAS license, you should move your money out as soon as possible. Unlicensed operators have no legal obligation to keep your money safe, no requirement to segregate customer funds, and no insurance if the company fails or is shut down by regulators.
MAS publishes a list of licensed payment institutions on its website. You can search by company name to confirm whether the service you use is licensed. If it is not on the list and the deadline has passed, the company is operating illegally in Singapore.
If you have money stuck with an unlicensed operator, you can report it to MAS through their online complaint form. MAS can issue enforcement orders, but recovery of your money is not may provide. This is why moving your funds to a licensed service is your best protection.
How the licensing pathway works for crypto platforms
Cryptocurrency exchanges and wallet services had to choose: obtain a digital payment token service license or stop serving Singapore customers. The licensing process requires the company to submit detailed information about its ownership, management, technology systems, and anti-money-laundering controls.
MAS reviews each application to ensure the company can prevent fraud, money laundering, and terrorist financing. The review can take several months. During that time, some crypto platforms applied for a license; others chose to exit Singapore entirely rather than comply.
If you use a crypto platform, check whether it holds a digital payment token service license. If it does not and it is still accepting Singapore users, it is operating illegally. If it obtained a license, you can see that listed on the MAS website under digital payment token service providers.
The licensing requirement does not make cryptocurrency safer as an investment—crypto prices still rise and fall, and you can still lose money. But it does mean that if you hold crypto on a licensed platform, the company must follow rules about how it stores your coins, how it handles your account, and what happens if the company fails.
Your protections under the new rules
Licensed payment institutions must keep customer money in segregated accounts, separate from the company's own operating money. If the company goes bankrupt, your money is not mixed with company assets and cannot be claimed by the company's creditors. This is a major protection that unlicensed operators did not provide.
Licensed companies must also comply with anti-money-laundering and know-your-customer rules. This means they verify who you are, monitor your transactions for suspicious patterns, and report large or unusual activity to authorities. While this can feel intrusive, it protects you from being unknowingly involved in fraud or illegal activity.
Licensed payment institutions must also have a complaints process. If something goes wrong—your money disappears, a transaction fails, or you are a victim of fraud—you can file a formal complaint with the company and, if unsatisfied, escalate to MAS. Unlicensed operators have no such obligation.
However, the Payment Services Act does not provide deposit insurance the way a bank account does. If a licensed payment institution fails, your money is protected by the segregation requirement, but there is no government fund backing it up. For this reason, it is wise to keep large sums in a bank account rather than in a digital wallet.
What changed for PayPal, Venmo, Zelle, and similar services
PayPal, Venmo, and similar money transfer apps already held licenses or obtained them before the January 2025 deadline. For you as a user, this means nothing changed about how you send money or what the service costs. The licensing requirement was already in place for these large operators; the 2025 deadline mainly affected smaller and newer payment services.
Zelle, which is owned by a consortium of U.S. banks, operates under banking licenses in the United States and does not require a separate payment services license in Singapore because it is not a Singapore-based operator. If you use Zelle to send money internationally, the receiving bank must be licensed in its own country, but Zelle itself is not subject to the MAS Payment Services Act.
What did change is that smaller payment apps and startups that were operating in a gray area—offering services without a clear license—had to either obtain a license or stop serving Singapore customers. This narrowed the field of available services but increased the safety of the services that remain.
How to check if your payment service is licensed
Visit the MAS website and use their Financial Institution Directory or search for "licensed payment institutions Singapore." You can search by company name or browse the full list of licensed operators in each category: standard payment institutions, major payment institutions, and digital payment token service providers.
The list shows the company name, license type, and the date the license was issued or last renewed. If your service appears on the list, it is licensed and regulated. If it does not appear and the company claims to operate in Singapore, it is unlicensed.
If you cannot find your service on the MAS list and you have money with that company, contact the company directly and ask for proof of its license. If the company cannot provide it, move your money to a licensed alternative immediately. Do not wait for MAS to shut the company down.
What to do if you use an unlicensed service
If you discover you have money with an unlicensed payment service, your first step is to withdraw your funds and move them to a licensed service or your bank account. Most unlicensed operators will still process withdrawals, though some may delay or refuse.
If the company refuses to return your money, file a complaint with MAS immediately. Include your account details, transaction history, and any communications with the company. MAS can investigate and issue enforcement orders, but recovery is not may provide.
You can also report the unlicensed operator to the Singapore Police Force if you suspect fraud. If the company took your money and disappeared, that is a criminal matter, not just a regulatory one.
Going forward, before you sign up for any new payment service, check the MAS licensed institutions list. It takes 30 seconds and can save you from losing money to an illegal operator.
Frequently Asked Questions
Does the MAS Payment Services Act apply to me if I am not in Singapore?
If you are a Singapore resident or citizen, or if you use a payment service that operates in Singapore, the act affects which services you can legally use. If you live outside Singapore and use a payment app that does not serve Singapore customers, the act does not directly apply to you. However, many global payment services obtained MAS licenses to serve Singapore users, so the rules may still affect your service.
Is my money protected if a licensed payment company fails?
Licensed payment institutions must keep your money in segregated accounts, so it is not mixed with company assets. If the company fails, your money should be returned to you before creditors are paid. However, there is no government insurance fund like there is for bank deposits, so the protection depends on the company's financial stability and compliance with segregation rules.
Can I still use cryptocurrency exchanges after the licensing requirement?
Yes, but only exchanges that hold a digital payment token service license. Check the MAS website for the list of licensed crypto platforms. If your exchange is not on the list and still accepts Singapore users, it is operating illegally and you should move your crypto to a licensed platform.
What if my payment app says it is "pending" a license from MAS?
If a company is still in the application process, it should not be accepting new customers or holding customer money. If it is, report it to MAS. Once the deadline passed in January 2025, companies either had a license or had to stop serving Singapore customers. "Pending" status after the deadline means the company is operating illegally.
Do I need to do anything if my payment service is already licensed?
No. If your service is on the MAS licensed institutions list, you can continue using it as normal. The licensing requirement does not change how you send money or what the service costs. It only means the company is regulated and your money has legal protections it did not have before.