Written reply to Parliamentary Question on virtual asset service providers

Date: For Parliament Sitting on 5 August 2026

Name and Constituency of Member of Parliament

Ms He Ting Ru, Sengkang GRC

Question

Ms He Ting Ru: To ask the Prime Minister and Minister for Finance given Singapore is one of the world's major virtual asset services provider hubs (a) what assessment the Government has made of the associated money laundering and proliferation financing risks; (b) whether existing safeguards, supervision and enforcement mechanisms are sufficient; and (c) what further measures the Government intends to take to prevent the financial system from being exploited by illicit actors.

Answer by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of MAS :

1. There are significant numbers of Virtual Asset Service Providers in key financial and business hubs around the world, including in the US, EU, UK and Dubai. Virtual asset service providers (VASPs) are regulated as digital payment token service providers (DPTSPs) in Singapore. Singapore was one of the first countries in the world to bring DPTSPs under financial sector regulation, recognising the inherently higher risks posed by their activities.

2. Since the regulatory framework for DPTSPs came into force in 2020, persons seeking to conduct or continue regulated activities relating to digital payment tokens have been required to obtain a licence from the Monetary Authority of Singapore (MAS). MAS applies stringent licensing criteria, and admits only players who demonstrate ability to put in place systems and processes to mitigate the relevant risks, and comply with MAS' regulations.

3. Post-licensing, MAS maintains close supervision over DPTSPs and have taken regulatory actions against those who fail to meet standards. Out of close to 300 applications for licences, there are currently 37 licensed DPTSPs. Most of the other applications have been rejected or were withdrawn when the applicants realised they could not meet our requirements.

4. In addition, MAS conducts surveillance of the sector to monitor for emerging money laundering, terrorism financing, and proliferation financing threats and engages DPTSPs proactively to raise their risk awareness. Given the fast-changing nature of the sector, MAS reviews our rules regularly to keep pace with the risk landscape and international standards.

5. We are also active participants in the Financial Action Task Force's (FATF) work to drive consistent global implementation of FATF requirements in this sector. In its recent assessment of Singapore's AML/CFT framework earlier this year, the FATF recognised the strength of Singapore's system and MAS' effectiveness in regulating the DPTSPs.