By June 30, 2025, all Singapore-based organizations offering digital token (DT) services overseas must either cease such activities or obtain a license.
The directive comes from the Monetary Authority of Singapore (MAS) following its industry response to the proposed regulatory framework for digital token service providers (DTSP) under the Financial Services and Markets Act 2022 (FSM Act).
MAS has made it clear that there will be no transitional grace period. Any company, individual, or partnership registered in Singapore providing overseas DT services without a license must cease operations when the provisions come into effect.
MAS emphasized that under Section 137 of the FSM Act, it is assumed that Singapore businesses operate in the domestic market, even if the token services are aimed at overseas markets. This applies even if digital tokens are not the firm's primary business.
Firms that ignore the rule are subject to fines of up to SGD 250,000 (approximately USD 200,000) and a maximum prison term of three years.
Only firms already licensed or exempt under Singapore's existing financial legislation, including the Securities and Futures Act, the Financial Advisors Act, or the Payment Services Act, can legally continue to offer DT services overseas without violating the new framework.
This move signifies Singapore's intention to strengthen regulatory oversight of digital assets and ensure that all cryptocurrency activities related to the country comply with strict compliance standards.
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