Singapore has strict and clear compliance regulations by the Monetary Authority of Singapore (MAS) in place for digital payment token service providers (DPTsp). The major payment institution (MPI) license is required by digital payment token service providers (DPTsp). In April 2024, Monetary Authority of Singapore (MAS) expanded the MPI’s coverage of digital payment tokens to include custody and many DPT payment service providers and market makers. Till date, there are a total of 24 MPI-licensed entities with another 50 exempted entities.
✅ To ensure compliance with the Monetary Authority of Singapore (MAS) Payment Services Act (PSA), we have summarized the top 3 regulatory disclosure requirements for the MPI license.
1. 📝 Daily Reconciliation of customer assets: Ensure accurate recording and matching of client assets.
2. 📊 Monthly and semi-annual submissions to the Monetary Authority of Singapore: Submit the necessary financial and operational reports to the Monetary Authority of Singapore (MAS) on a regular basis.
3. 📋 Annual Audits: Conduct annual audits to ensure financial and operational compliance.
On April 8, 2024, the Monetary Authority of Singapore (MAS) expanded the scope of regulated payment services and introduced user protection requirements for digital payment token services. The new guidelines state that providers must safeguard customers’ assets by maintaining trust accounts, either themselves or through a third party.
🔒 Segregating Customers’ Assets in a Trust Account:
1. Separate blockchain addresses for customers’ assets.
2. At least two parties are required to authorize the transactions.
3. At least 90% of customer assets are stored in cold wallets.
