What Bybit's MAS Warning Means for Singapore
Published 6/18/2026, 1:40:26 AM
The Listing: What It Is and Isn't
Bybit was formally added to the Monetary Authority of Singapore's (MAS) Investor Alert List (IAL) on June 17, 2026. This means MAS has flagged that Bybit may be "wrongly perceived as being licensed, authorized, or otherwise regulated by MAS" — when it is not.
Critical distinction: The IAL is a public warning tool, not a ban or enforcement action. Inclusion does not mean Bybit has broken laws or is a scam. Bybit was co-founded by Singaporean entrepreneur Ben Zhou but operates globally from Dubai and other jurisdictions, not under a Singapore license. The listing places Bybit alongside Binance (since September 2021) and KuCoin (since February 2026) on the IAL.
Source: WuBlockchain/Twitter | Source: Cointelegraph
Regulatory Framework: What Singapore Law Requires
Under Singapore's Payment Services Act (PSA) 2019, any firm offering Digital Payment Token (DPT) services to Singapore residents must obtain MAS authorization — either as a Standard Payment Institution (SPI) or Major Payment Institution (MPI). Key compliance requirements include:
| Requirement | Details |
|---|---|
| AML/CFT compliance | Mandatory KYC, Customer Due Diligence, FATF Travel Rule for transactions ≥ SGD 1,500 |
| Customer asset segregation | 90% of customer assets in offline cold wallets; daily reconciliations |
| Capital requirements | SGD 100,000 (SPI) to SGD 250,000–500,000 (MPI) |
| Annual audit & fee | Independent auditor required; SGD 10,000 annual fee |
The Financial Services and Markets Act (FSMA) 2022 extended oversight to DPT firms serving overseas clients from a Singapore presence. MAS set a final deadline of June 30, 2025 with no grace period, stating it will "generally not approve" applications for entities serving only overseas persons due to higher money laundering and terrorist financing risks. As of January 2026, 36 companies have received MPI licenses for DPT services.
Source: Bloomberg | Source: CryptoRank
What This Means for Singapore Users on Bybit
1. Bybit already restricts Singapore users under its own Terms of Service via geo-blocks on Singapore IP addresses. MAS's listing reinforces that any Singapore user who continues accessing Bybit does so without MAS-backed protections, including dispute resolution mechanisms and regulatory oversight.
2. Platform choice matters: Users should verify licensing status via the MAS Financial Institutions Directory rather than assuming accessibility implies licensing.
3. Both Bitget and Bybit have announced plans to pull out of Singapore's retail crypto scene — Bitget relocating staff to Dubai and Hong Kong. Over 100 other platforms remain in licensing queues.
4. MAS has repeatedly cautioned that cryptocurrencies are not suitable for retail investors and that regulatory measures cannot shield consumers from cryptocurrency service providers collapsing or holdings losing value.
What Remains Unresolved
Specific details on legal exposure or penalties for Singapore users who continue using Bybit despite the geo-blocks are not provided in available MAS guidance. MAS has not issued explicit enforcement guidance against individual users. The user-facing risk is primarily the absence of regulatory protections rather than a defined legal penalty — but this gap in public guidance means users are operating with limited clarity on enforcement risk.
Source: Bloomberg | Source: CryptoRank
Conclusion
Bybit's MAS Investor Alert List addition signals that the exchange is operating outside Singapore's regulated framework — not that it is illegal. Singapore users face reduced protections (no dispute resolution, no regulatory oversight on asset segregation) rather than a defined legal penalty for continued use. The broader trend shows Bitget and Bybit pulling out of Singapore's retail market as the regulatory environment tightens toward the FSMA deadline.
Want to verify licensing status on any alternative platforms, or check whether your current holdings on unregulated exchanges should be migrated to a MAS-licensed provider?