Recently, the Monetary Authority of Singapore (MAS) issued a policy that clearly states all Digital Token Service Providers (DTSP) must obtain a license by June 30, or they must immediately cease operations.
The focus is not on 'anti-Web3', but on 'zero tolerance':
• There is no grace period.
• Even if customers are overseas, as long as the project has employees or an office address in Singapore, it is considered operational.
• Unlicensed operators will face fines of up to SGD 250,000 + three years of imprisonment.
This is a systematic 'industry watershed' —
Projects with genuine compliance structures in CeDeFi will stand out.
Projects that engage in fake outsourcing, shadow operations, and regulatory arbitrage will be cleaned out.
From an industry perspective, this is more like a sign of Singapore's 'active tightening of financial risk entry':
• On one hand, it is to stabilize its own financial system.
• On the other hand, it is also to draw clear boundaries, handing over the high-risk parts to other jurisdictions.
Who will catch these outflowing projects?
• Hong Kong continues to release regulatory dividends and actively attracts Web3 capital.
• Abu Dhabi and Dubai provide a clear licensing system.
• Other Southeast Asian countries like Vietnam and Malaysia are mid-to-low threshold alternative options.
Web3 is not being expelled, but is being forced into 'Phase Two':
Compliance, infrastructure, and on-chain data assetization.
Is Singapore tightening the reins a dead end? Or the start of a new cycle? Welcome to discuss.
