The Monetary Authority of Singapore has proposed making dispute resolution membership mandatory for licensed standard and major payment institutions, expanding customer recourse across the digital asset and payment sector, Baker McKenzie reported on October 16, 2026.
Mandatory Dispute Resolution Expands Across Singapore Payment Providers
- Standard payment institutions and major payment institutions face a mandatory subscription requirement under upcoming regulatory amendments.
- Feedback on the Monetary Authority of Singapore consultation paper closes on November 30, 2026.
- Money-changing licensees remain excluded from the proposed dispute resolution membership requirement.
When the consultation paper was issued on October 16, 2026, the Monetary Authority of Singapore set a deadline of November 30, 2026, for industry feedback on the proposed amendments to the Financial Services and Markets (Dispute Resolution Schemes) Regulations 2023. Under the current framework, licensed standard payment institutions and major payment institutions handle customer complaints independently under the Guidelines on Fair Dealing and the E-Payments User Protection Guidelines. While e-wallet service providers already subscribe to the Financial Industry Disputes Resolution Centre under the 2024 Shared Responsibility Framework, the new proposal extends this obligation across the wider payment service provider sector.
Eligible complainants—including individuals, sole proprietors, charities, and small businesses—will gain access to mediation and adjudication through the Financial Industry Disputes Resolution Centre. The proposal also captures upcoming MAS-regulated stablecoin issuers under the Payment Services Act 2019 once that specific regulatory regime comes into force. However, money-changing licensees are excluded due to their simple business models and limited risk surface.
| Entity Class | Current Licensing Status | Proposed Dispute Resolution Requirement |
|---|---|---|
| Standard Payment Institutions | Licensed under Payment Services Act 2019 | Mandatory Financial Industry Disputes Resolution Centre subscription |
| Major Payment Institutions | Licensed under Payment Services Act 2019 | Mandatory Financial Industry Disputes Resolution Centre subscription |
| Stablecoin Issuers | Proposed fourth license class | Mandatory subscription after regime comes into force |
| Money-Changing Licensees | Licensed for simple exchange services | Excluded from subscription requirement |
Implementation details remain subject to ongoing industry engagement scheduled through 2027.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
