More than 300 companies have applied for a license to operate payment or cryptocurrency exchange businesses in Singapore, according to Mr. Sopnendu Mohanty, Chief FinTech Officer at the Monetary Authority of Singapore (MAS). He revealed the figures in a recent interview with Bloomberg, noting that prominent firms such as Alibaba, Binance, and Google’s parent company are among the applicants.
Mohanty emphasized that the applications are still under review and there is no fixed timeline for approval. Granting such a license gives companies significant advantages, so the process requires careful consideration. “We need to ensure that companies that receive an MAS license are trustworthy,” he stated.
Growing Interest in Singapore’s Crypto Sector
Singapore’s private sector has already shown strong interest and involvement in cryptocurrency trading. For instance, the Singapore Exchange (SGX) is actively working to establish itself as Asia’s pricing hub for major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). In addition, DBS Bank, one of Southeast Asia’s largest financial institutions, recently launched Asia’s first bank-backed cryptocurrency trust solution.
This growing activity reflects Singapore’s strategic aim to become a global fintech and digital asset hub. However, the regulatory approach remains cautious and structured.
Official Warnings on Cryptocurrency Risks
Despite industry enthusiasm, the Singapore government has repeatedly warned the public about the risks of investing in cryptocurrencies. Mohanty reaffirmed this stance, describing Bitcoin as a “speculative asset” and advising individuals not to blindly invest in instruments they do not fully understand.
“Its volatility is very high, and it is very complex,” he said. “MAS is using various channels, including parliamentary speeches, to advise the public to participate with caution.”
He made it clear that while people are free to make their own financial decisions, they should be aware of the potential downsides of high-risk assets.
The Shift Toward Institutional-Grade Digital Asset Infrastructure
Looking ahead, Mohanty pointed out that the world is steadily shifting toward digital currencies—including central bank digital currencies (CBDCs), stablecoins, and other crypto assets. A key priority, in his view, is promoting the institutionalization of crypto exchanges.
He cited Partior—a blockchain-based multi-currency clearing and settlement network established by J.P. Morgan, Temasek, and DBS Bank—as an example of the type of unified platform that can serve as a backbone for the future digital economy.
“When such a backbone is established, transactions will begin to flow through it, helping digital assets become more mainstream,” he explained. “This transition is valuable in reshaping how people perceive payments and money.”
Frequently Asked Questions
What types of licenses are companies applying for?
Companies are applying for either a payment services license or a digital payment token (cryptocurrency exchange) license issued by the MAS. These allow firms to offer regulated payment or crypto asset services in Singapore.
How long does the MAS license approval process take?
There is no official timeline for application review. The MAS evaluates each applicant thoroughly to ensure compliance and operational reliability, which can be a lengthy process.
Is Singapore friendly toward cryptocurrency businesses?
Singapore is known for its innovation-friendly regulatory environment, but the MAS maintains a strict approach to licensing to protect consumers and ensure market integrity. The goal is to foster responsible innovation.
Can individuals freely trade crypto in Singapore?
Yes, individuals can trade cryptocurrencies, but the MAS advises them to be cautious and only invest what they understand and can afford to lose. Several licensed platforms operate under regulatory oversight.
What is Partior?
Partior is a blockchain-based interbank clearing and settlement platform founded by J.P. Morgan, DBS, and Temasek. It aims to improve efficiency in cross-border payments and digital asset transactions.
Are stablecoins and CBDCs available in Singapore?
The MAS has been actively researching and testing both CBDCs and stablecoins. While no retail CBDC has been launched yet, several regulated stablecoin projects are underway.
The high number of license applications reflects strong global confidence in Singapore’s regulatory framework and its role as a leading fintech hub. As the MAS continues to balance innovation with investor protection, the future of digital payments and crypto assets in the country looks promising.
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