Key Highlights

The Strategic Reality: Southeast Asian fintechs are building competitive foundations through regulatory licenses and distribution networks—creating assets that global players struggle to replicate and cash-rich corporates increasingly value for M&A.

Case Study Data Points:

• Finmo: Multi-jurisdiction licenses across 6 countries (Singapore MPI, UK EMI, plus Australia, New Zealand, Canada, US); $18.5M Series A funding in 2025
• StraitsX: MAS-licensed Major Payment Institution in Singapore; $10B+ in on-chain transactions; partnerships with DBS, Standard Chartered, Binance;
• Surfin: 60M users across 8 countries; $2.7B cumulative transactions; bootstrapped until $12.5M Series A in 2024; Visa partnership for credit cards in Mexico

The Competitive Moat: 86% of companies report limited technical expertise as main regulatory obstacle; 79% struggle with multi-regulator coordination—creating barriers that protect licensed players.

While many companies focus on building products or raising funding, a quieter evolution has been taking place in Southeast Asia. Companies like Finmo, StraitsX, and Surfin aren’t just building products—they’re building regulatory foundations combined with distribution networks that create the necessary infrastructure to compete globally.

These Southeast Asian companies demonstrate a fundamental truth many others haven’t grasped—you cannot compete globally without both regulation and distribution. It’s not either/or. It’s both/and.

When Finmo secured its UK EMI license in July 2025, it wasn’t just checking a regulatory box—it was building distribution infrastructure that would take competitors years to match. When StraitsX operates as a MAS-licensed Major Payment Institution while building partnerships with global institutions, it’s creating distribution networks that unlicensed competitors will spend a lot to access.

The Regulatory-Distribution Challenge

The reality of what it takes for global players to build the license-distribution combination reveals why this approach creates strong competitive foundations. According to research on fintech regulation in Asia Pacific, 86% of companies report limited technical expertise as their main obstacle in forming regulatory frameworks, while 79% struggle with coordinating activities across multiple regulators [1].

Global players consistently underestimate what regulatory compliance in Asia actually entails. It’s not just about meeting requirements—it’s about building relationships, understanding cultural nuances, and navigating systems that weren’t designed for foreign companies. More importantly, it’s about understanding how regulatory relationships unlock distribution opportunities unavailable to unlicensed players.

While global players are figuring out which licenses they need, Southeast Asian companies are already building distribution networks on top of their regulatory foundations.

Case Study: Finmo’s License-Enabled Distribution

Finmo’s approach illustrates how Southeast Asian companies build the license-distribution combination as competitive foundation. Founded in 2021, Finmo built a licensing strategy creating distribution opportunities across six jurisdictions: Singapore (MPI license), UK (EMI license), plus regulatory approvals in Australia, New Zealand, Canada, and the United States [2].

The UK EMI license provides direct integration with UK clearing systems like Faster Payments, ability to issue IBANs, and hold safeguarded client funds locally [3]. These aren’t substitutable features—they’re fundamental distribution advantages enabling institutional partnerships at scale.

Their $18.5 million Series A funding in February 2025 was about scaling their license-enabled distribution model [4]. Each jurisdiction represents access to local infrastructure and institutional relationships competitors would need years to replicate.

Case Study: StraitsX’s MAS Framework + Global Distribution

StraitsX demonstrates how to leverage Singapore’s regulatory framework to create global distribution networks. Operating as a MAS-licensed Major Payment Institution in Singapore, they’ve built regulated stablecoin services that unlock global distribution opportunities unlicensed competitors cannot access [5].

Their stablecoins—XSGD, XUSD, and XIDR—have processed over $10 billion in on-chain transactions [6]. That regulatory backing enabled distribution partnerships with DBS for custody, Standard Chartered for banking services, Binance for exchange listings, and membership in Circle Alliance for global network access [7].

These partnerships illustrate why the license-distribution combination is powerful. Major exchanges have compliance requirements about which stablecoins they can list. Banks don’t partner with unregulated entities for custody services. The MAS license isn’t just compliance—it’s the foundation making global distribution possible.

Case Study: Surfin’s Multi-Market Compliance Foundation

Surfin proves the license-distribution foundation works when building from the ground up. Founded in 2017, Surfin built to serve 60 million users across eight countries while maintaining full regulatory compliance in every market—all while remaining bootstrapped until their $12.5 million Series A in October 2024 [8].

Their compliance-first approach enabled distribution partnerships like their Visa relationship for “Sufinc” credit cards in Mexico. The numbers demonstrate sustainability: $2.7 billion in cumulative transactions while bootstrapped [9]. This proves that with the right regulatory standing and distribution partnerships, sustainable growth becomes possible without burning cash on user acquisition.

Building Foundations for Scale and Value Creation

What these Southeast Asian companies demonstrate represents more than individual strategies—they’re building infrastructure that creates long-term value in multiple ways. These license-distribution foundations become increasingly valuable as companies scale, creating assets that cash-rich corporates find difficult to replicate internally.

For venture exits, these regulatory moats and distribution networks represent tangible assets that acquirers pay premiums for. A global bank or payments company looking to enter Asian markets faces the same 86% technical expertise gap and multi-year licensing timelines that create barriers for organic expansion. Acquiring a company with established licenses and distribution partnerships becomes the fastest path to market access.

The license-distribution combination also creates optionality for further scale. Each regulatory approval opens new product possibilities, each distribution partnership enables cross-selling opportunities, and each market creates data and relationships that compound over time. These aren’t just operational assets—they’re strategic assets that become more valuable as global competition intensifies.

Southeast Asian companies are building these foundations most systematically because they had to—they couldn’t rely on massive funding to subsidize growth indefinitely. But in doing so, they’ve created what may become the most valuable assets in global fintech: regulated infrastructure that enables sustainable distribution at scale.

The future belongs not to companies that choose between regulation and growth, but to those that understand how to make them reinforce each other. Right now, Southeast Asian companies are building these foundations most effectively—creating the necessary infrastructure not just to compete globally, but to become the acquisition targets that enable global players to compete where it matters most.

References

[1] Cambridge Centre for Alternative Finance. “Fintech Regulation in Asia Pacific.” https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/fintech-regulation-in-asia-pacific/

[2] TechNode Global. “Singapore’s fintech firm Finmo secures UK EMI license, expands global footprint.” https://technode.global/2025/07/10/singapores-fintech-firm-finmo-secures-uk-emi-license-expands-global-footprint/

[3] The Paypers. “Finmo approved as EMI in UK expansion.” https://thepaypers.com/payments/news/finmo-approved-as-emi-in-uk-expansion

[4] FinTech Futures. “Singapore’s Finmo bags $18.5m Series A co-led by Quona Capital and PayPal Ventures.” https://www.fintechfutures.com/2025/02/singapores-finmo-bags-18-5m-series-a-co-led-by-quona-capital-and-paypal-ventures/

[5] StraitsX. “StraitsX secures Major Payment Institution Licences and launches XUSD stablecoin.” https://www.straitsx.com/blog-post/straitsx-secures-major-payment-institution-licenses-and-launches-xusd-stablecoin

[6] FinTech News Singapore. “StraitsX Unveils Refreshed Brand, Plans New Features.” https://fintechnews.sg/112180/digitalassets/straitsx-refreshed-brand/

[7] Circle Alliance Directory. “StraitsX.” https://partners.circle.com/partner/straitsx

[8] PR Newswire. “Fintech platform for the underserved middle class Surfin raises US$12.5 million from Insignia Ventures Partners.” https://www.prnewswire.com/news-releases/fintech-platform-for-the-underserved-middle-class-surfin-raises-us12-5-million-from-insignia-ventures-partners-as-it-sustainably-uplifts-60-million-lives-across-3-continents-302271539.html

[9] PR Newswire. “Fintech platform for the underserved middle class Surfin raises US$12.5 million from Insignia Ventures Partners.” https://www.prnewswire.com/news-releases/fintech-platform-for-the-underserved-middle-class-surfin-raises-us12-5-million-from-insignia-ventures-partners-as-it-sustainably-uplifts-60-million-lives-across-3-continents-302271539.html