Payment Services Act 2019 – Digital Payment Token Services
- Issuing authority
- Parliament of Singapore / Monetary Authority of Singapore (MAS)
- Effective date
- The Payment Services Act came into force on 28 January 2020. The major expansion of regulated Digital Payment Token (DPT) services took effect on 4 April 2024.
- Scope
- Singapore
Quick Summary
The Payment Services Act regulates payment services in Singapore, including Digital Payment Token (DPT) services. Crypto businesses carrying out regulated DPT activities generally need to be licensed or exempt and must comply with applicable requirements, including AML/CFT controls. Since 4 April 2024, the regime covers a wider range of crypto activities, including certain DPT transfers and custody-related services, rather than focusing mainly on buying and selling DPTs.
What is it?
The Payment Services Act is Singapore's main legislation for regulating payment service providers. For crypto businesses, it creates the regulatory framework for DPT services. The 2024 amendments expanded the definition of DPT services to capture additional activities as the crypto market developed.
Who does it apply to?
- Digital Payment Token service providers
- Crypto exchanges
- Crypto custody providers
- Other businesses providing regulated DPT services in Singapore
What it means
The major expansion of the DPT regime took effect on 4 April 2024, bringing additional activities such as certain DPT transfers and custody-related services within the regulatory perimeter. Singapore also strengthened customer-asset protections for DPT service providers. The current Payment Services Regulations contain specific requirements covering the safeguarding of customer DPT assets, trust arrangements and record keeping.