Singapore Licenses Three New Crypto Exchanges Under MAS Framework

Three New Exchanges Join Singapore's Licensed Roster

The Monetary Authority of Singapore (MAS) has granted Major Payment Institution (MPI) licenses to three new cryptocurrency exchanges, expanding the city-state's roster of regulated digital asset trading platforms to 19. The announcement, made on February 6, 2026, represents the largest single batch of crypto exchange approvals since MAS began issuing licenses under the Payment Services Act (PSA) in 2020.

The three newly licensed entities are HashKey Singapore, a subsidiary of Hong Kong-based HashKey Group; Upbit SG, the Singaporean arm of South Korean exchange operator Dunamu; and Coinhako, a Singapore-founded platform that has operated under an exemption since 2020. Each company completed a multi-year application process that included on-site inspections, technology audits, and reviews of their compliance infrastructure.

MAS Managing Director Chia Der Jiun said in a statement that the approvals reflect the regulator's commitment to building a "well-regulated and innovative digital asset ecosystem" while maintaining robust consumer protections. The regulator emphasized that licensing is not an endorsement of any specific cryptocurrency or trading activity.

MAS Payment Services Act Requirements

The Payment Services Act, first enacted in 2019 and substantially amended in 2023, provides the legal framework for crypto exchange licensing in Singapore. Companies that wish to offer digital payment token (DPT) services, including buying, selling, and exchanging cryptocurrencies, must obtain either a Standard Payment Institution or Major Payment Institution license. The MPI license, which all three new exchanges received, allows for unlimited transaction volumes and imposes the strictest requirements.

MPI holders must maintain a minimum base capital of S$250,000 and hold a security deposit equal to at least S$100,000 or 3% of their average monthly customer float, whichever is higher. Customer assets must be held in trust accounts at approved financial institutions, segregated from the exchange's operational funds. This segregation requirement, strengthened after the collapse of FTX in 2022, ensures that customer funds cannot be used for proprietary trading or operational expenses.

The AML and KYC requirements are extensive. Licensed exchanges must verify the identity of every customer, conduct enhanced due diligence on high-risk accounts, file suspicious transaction reports with the Suspicious Transaction Reporting Office, and maintain transaction records for at least five years. MAS also requires licensed platforms to conduct travel rule compliance for cross-border transfers, sharing originator and beneficiary information with counterparty institutions.

Who Are the Newly Licensed Exchanges

HashKey Singapore enters the market backed by the institutional credibility of HashKey Group, which already holds a Type 1 and Type 9 license from Hong Kong's Securities and Futures Commission. The firm has positioned itself as a bridge between traditional finance and digital assets, offering custody, trading, and asset management services. Its Singapore operation will focus on spot trading for institutional and accredited investors initially, with plans to expand to retail customers by mid-2026.

Upbit SG brings the technology and liquidity infrastructure of Dunamu, South Korea's largest crypto exchange operator. Upbit processes over $3 billion in daily trading volume globally and has a registered user base exceeding 10 million. The Singapore launch gives Dunamu a foothold in Southeast Asia's largest financial hub and allows it to serve the region's growing base of crypto-native users and institutions.

Coinhako has the longest history in Singapore's crypto market. Founded in 2014, the platform was one of the first to offer fiat-to-crypto trading in Singapore dollars. It has operated under a PSA exemption while its full license application was under review, a process that took more than four years. The MPI license removes the operational restrictions that came with the exemption period and allows Coinhako to scale its services.

Singapore's Position in the Global Crypto Regulatory Race

Singapore's approach to crypto regulation has been deliberate and measured. Unlike jurisdictions that either banned crypto trading outright or took a hands-off approach, MAS chose a middle path: allowing the industry to operate while gradually tightening the regulatory framework based on observed risks and international best practices.

The PSA framework has been updated multiple times since its initial implementation. The 2023 amendments introduced restrictions on retail marketing of crypto services, requirements for risk disclosures, and a ban on offering lending and staking products to retail customers through licensed exchanges. These measures were partly a response to the Terra/Luna collapse and the FTX bankruptcy, both of which affected Singapore-based investors.

Internationally, Singapore's framework is frequently compared to Hong Kong's Virtual Asset Service Provider (VASP) licensing regime and the European Union's Markets in Crypto-Assets (MiCA) regulation. All three jurisdictions require exchange licensing, customer fund segregation, and AML compliance. Singapore's key differentiator is the speed and clarity of its enforcement. MAS has publicly warned or taken action against more than 100 unregulated crypto entities since 2021, sending a clear signal about the cost of operating without a license.

The global crypto regulation market continues to evolve, with Singapore maintaining its position among the most proactive jurisdictions worldwide.

Impact on Regional Competition

The expansion of Singapore's licensed exchange roster intensifies competition across the Asia-Pacific region. Hong Kong, which granted its first batch of VASP licenses in 2024, now has 11 licensed platforms. Dubai's Virtual Asset Regulatory Authority (VARA) has licensed 15 entities. Each jurisdiction is competing for a share of Asia's estimated $1.2 trillion annual crypto trading volume.

For exchanges like Binance, which already holds a Singapore MPI license through its local subsidiary, the arrival of HashKey and Upbit means increased competition for institutional clients. Binance Singapore has been building out its institutional services division since receiving its license in 2023, and the new entrants bring strong regional brand recognition and existing customer bases.

The licensing trend also affects smaller, unlicensed platforms that have been serving Singapore residents from offshore locations. As the number of licensed options grows, MAS has stepped up enforcement against unlicensed operators. In January 2026, the regulator added 14 new entities to its Investor Alert List, bringing the total to over 1,200 platforms that Singapore residents are warned against using.

What This Means for Crypto Traders in Singapore

For individual traders, the practical impact of three new licensed exchanges is straightforward: more choices, potentially lower fees through competition, and confidence that their chosen platform meets MAS regulatory standards. Licensed exchanges offer protections that offshore platforms do not, including segregated customer funds, dispute resolution mechanisms, and regulatory oversight.

The increased competition may also lead to improved product offerings. Licensed exchanges in Singapore have been limited to spot trading for retail customers, with derivatives and leverage products restricted to accredited and institutional investors. However, industry observers expect MAS to revisit these restrictions as the market matures and the regulatory framework proves effective at managing risks.

Traders who currently use unlicensed offshore platforms should consider the regulatory risks. While MAS does not typically pursue enforcement against individual users, the regulator has the authority to block payment channels to unlicensed platforms and has done so in specific cases. Using a licensed exchange eliminates this risk and provides access to Singapore-dollar on-ramps that comply with local banking regulations.