Latest Payments News: Singapore To Require Offshore Crypto Firms To Be Licensed Or Cease Operations By June 2025, and more

Catch up on some of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

Singapore To Require Offshore Crypto Firms To Be Licensed Or Cease Operations By June 2025

The Monetary Authority of Singapore (MAS) has clarified the scope of its regulatory regime for providers of digital tokens, crypto-assets used for payments.

The regulator issued a statement confirming that firms offering certain digital asset services to overseas customers will soon need to be licensed.

The new requirement forms part of Singapore’s implementation of the Financial Services and Markets Act 2022 (FSM Act), with the relevant provisions coming into force on June 30, 2025.

MAS finalised the details of the regime on May 30, following a public consultation launched in October last year.

Under the framework, digital token service providers (DTSPs) must be licensed if they provide services involving digital payment tokens (DPTs) or tokens representing capital market products to customers located outside Singapore.

MAS has made clear that it will adopt a highly cautious approach to licensing such firms, given the greater risks posed by the internet-based and cross-border nature of these activities.

It expects to grant licences only in “extremely limited” circumstances, where applicants can demonstrate strong justifications, credible governance structures, and compliance with international regulatory standards.

Without a licence, providers will need to suspend or cease the provision of regulated services by the commencement date.

Norwegian Consumer Council Reports Klarna For Breaching Regulatory Requirements

In a submission to the Norwegian Consumer Authority, the consumer advocacy group has accused the Swedish fintech firm of repeatedly violating Norway’s credit marketing regulations.

The Norwegian Consumer Council argues that Klarna is consistently failing to properly inform customers about the potential costs of using credit when paying for goods, both online and in physical stores.

Under Norway’s Financial Contracts Regulations, credit marketing must clearly display the effective interest rate, a representative example, and the total cost of borrowing, but the Council says that Klarna’s marketing often omits or obscures such details.

The organisation has highlighted several examples, including a case in which a new Klarna customer was granted a NOK140,000 (€12,150) credit limit but was shown an example calculation based on borrowing just NOK5,000 (€433), only a fraction of the total credit offered.

The Council argues that these examples do not accurately represent the potential financial burden on consumers.

“We experience and are concerned that young consumers in particular do not perceive that “taking it on Klarna” is the same as buying on credit,” said Guro Sollien Eriksrud, head of consumer economics at the Norwegian Consumer Council.

“Klarna must ensure that the costs of the credit purchase are clearly stated, so that people can assess the consequences of what they are doing.”

In response to the accusation, a spokesperson for Klarna has said: “we have not yet learned whether the authority will investigate the complaint but will of course respond when and if they reach out formally.”

“With that said, we naturally follow all applicable laws and regulations. If something needs adjusting, we will of course do so promptly. We always strive to communicate as clearly as possible with our customers."

FCA Moves To Boost AI Use With New Sandbox

UK financial services firms will be encouraged to experiment with artificial intelligence (AI) as part of the Financial Conduct Authority’s (FCA) strategy to support economic growth through technological innovation.

The “Supercharged Sandbox”, launched in collaboration with American technology giant Nvidia, builds on the existing digital sandbox infrastructure provided by NayaOne, and will be available to any financial services firm that wants to experiment with AI, the FCA said.

Firms can apply for the sandbox through the FCA website, and the experiments, which will use Nvidia accelerated computing and Nvidia AI enterprise software, will begin in October.

Jessica Rusu, the FCA’s chief data, intelligence and information officer, said the regulator would help firms harness AI to benefit markets and consumers, while supporting economic growth.

“This collaboration will help those that want to test AI ideas but who lack the capabilities to do so”, she added.

Norwegian Consumer Council Reports Klarna For Breaching Regulatory Requirements

In a submission to the Norwegian Consumer Authority, the consumer advocacy group has accused the Swedish fintech firm of repeatedly violating Norway’s credit marketing regulations.

The Norwegian Consumer Council argues that Klarna is consistently failing to properly inform customers about the potential costs of using credit when paying for goods, both online and in physical stores.

Under Norway’s Financial Contracts Regulations, credit marketing must clearly display the effective interest rate, a representative example, and the total cost of borrowing, but the Council says that Klarna’s marketing often omits or obscures such details.

The organisation has highlighted several examples, including a case in which a new Klarna customer was granted a NOK140,000 (€12,150) credit limit but was shown an example calculation based on borrowing just NOK5,000 (€433), only a fraction of the total credit offered.

The Council argues that these examples do not accurately represent the potential financial burden on consumers.

“We experience and are concerned that young consumers in particular do not perceive that “taking it on Klarna” is the same as buying on credit,” said Guro Sollien Eriksrud, head of consumer economics at the Norwegian Consumer Council.

“Klarna must ensure that the costs of the credit purchase are clearly stated, so that people can assess the consequences of what they are doing.”

In response to the accusation, a spokesperson for Klarna has said: “we have not yet learned whether the authority will investigate the complaint but will of course respond when and if they reach out formally.”

“With that said, we naturally follow all applicable laws and regulations. If something needs adjusting, we will of course do so promptly. We always strive to communicate as clearly as possible with our customers."

EBA Recommends Enforcement Pause To Avoid PSD2-MiCA Compliance Duplication

The European Banking Authority (EBA) has issued a No Action letter aiming to reduce the risk of crypto-asset firms needing to obtain two separate licences for certain payment activities under overlapping European rules.

Following a European Commission request last December, the EBA has officially issued a No Action letter regarding the EU’s payments and crypto regimes.

Its goal is to ensure that, in the long term, there is no need for dual authorisation under two pieces of EU law for the activity of transacting electronic money tokens (EMTs).

A No Action letter is formal regulatory guidance used by supervisors to pause on enforcing specific legal requirements in certain cases, usually to avoid regulatory uncertainty or disproportionate burden during transition periods.

The letter focuses on the interplay between the EU’s existing Payment Services Directive (PSD2) and the recently introduced Markets in Crypto-Assets Regulation (MiCA).

It recommends that national regulators in the European Economic Area (EEA) do not enforce some aspects of PSD2 on crypto-asset service providers (CASPs) dealing in EMTs (a category of crypto-assets designed to maintain stable value against official currencies) until clearer rules are in place.

The EBA warned that if regulators do not take its advice, firms transacting in EMTs could find themselves subject to overlapping and potentially conflicting requirements under PSD2 and MiCA.

In particular, firms could face the disproportionate burden of requiring both a CASP authorisation under MiCA and a payment services licence under PSD2 for effectively the same activity.

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