SINGAPORE Law and Practice Contributed by: Kenneth Pereire and Lin YingXin, KGP Legal LLC
regulatory support. The predominant verticals include the following. Digital Payments and Remittances Digital payment platforms dominate Singapore’s fintech landscape, with both established players like PayNow and GrabPay and newer entrants offering seamless, real-time payment solutions. Cross-border payment systems, such as those facilitated by Project Nexus, address the grow - ing need for efficient regional remittances, tar - geting SMEs and consumers across ASEAN. Digital Lending and Alternative Financing Platforms like Funding Societies and Validus focus on providing SMEs with alternative financ - ing options, including peer-to-peer lending and invoice financing. Embedded finance solutions offered by Grab and Shopee integrate credit and microloan services directly into their eco - systems. WealthTech and Robo-Advisers Wealth management platforms, including StashAway and Endowus, lead in democratis - ing access to investment opportunities. These platforms offer personalised financial planning and portfolio management using AI-driven tools, making them appealing to retail and mass-afflu - ent investors. InsurTech Insurance-focused fintechs like Singlife with Avi - va leverage AI and big data to provide afforda - ble, customisable policies. Embedded insurance solutions integrated into e-commerce platforms and ride-hailing apps are also gaining traction. Crypto and Digital Assets Singapore remains a hub for cryptocurrency and blockchain-based businesses. Established play - ers like Crypto.com and new platforms continue
to offer services such as digital asset trading, tokenised securities and custody solutions. MAS’s regulatory framework ensures market stability while fostering innovation in decentral - ised finance (DeFi). Regtech Regulatory technology solutions have gained importance, helping financial institutions auto - mate compliance processes. Companies like Tookitaki offer AI-powered solutions for anti- money laundering (AML) and risk management, addressing stricter regulatory requirements. Green and ESG Fintech Sustainability-focused fintechs, such as Gree - nArc Capital, support green finance by providing tools to track ESG metrics, enabling businesses and investors to meet sustainability goals. Banking as a Service (BaaS) BaaS platforms allow businesses to integrate banking services into their offerings. Fintechs like Nium enable non-financial companies to provide payment, credit and remittance services, creating new revenue streams. 2.2 Regulatory Regime Digital payment providers are regulated under the PSA for services like e-money issuance and cryptocurrency transactions. Licensing options include Money-Changing Licence, SPI or MPI. Providers must comply with AML/CFT rules (MAS Notice PSN02) and TRM Guidelines for cybersecurity. Crypto exchanges are governed by the PSA for digital payment tokens and SFA for tokenised securities. Licensed as MPI or RMO, they must adhere to AML/CFT rules, investor protection measures, and MAS Notices PSN02 and PSN04.
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