New Strict Regulations from the Monetary Authority of Singapore for Cryptocurrency Companies

The Monetary Authority of Singapore (MAS) has just announced strict regulations for cryptocurrency companies providing services abroad. According to the latest guidelines, digital token service providers (DTSP) must cease all international activities before June 30, 2025, unless legally licensed. If violated, penalties can reach up to 200,000 USD along with a maximum of 3 years imprisonment.

Strict Compliance or Face Heavy Penalties

Under the Financial Services and Markets Act (FSM Act 2022), any entity based in Singapore — including individuals, businesses, or partnerships — providing digital token (DT) services to foreign users must:

  • Obtain a digital token service provider (DTSP) license, or

  • Immediately cease all international operations.

Non-compliance will be severely punished:
Fines up to 250,000 Singapore Dollars (approximately 200,000 USD)
Maximum imprisonment of 3 years.

Key Points to Note in MAS's New Regulations

  • No Extension Period:
    Current providers are not allowed to apply for a transition roadmap or extension. The deadline is June 30, 2025.

  • License Exemption:
    Entities already licensed under Securities and Futures Act, Financial Advisers Act, or Payment Services Act are exempted from new licensing.

  • Strict AML/CFT Standards:
    Only companies with robust Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) systems are eligible to obtain a DTSP license.

Why Tighten Control?

MAS's goal is to eliminate the phenomenon of 'regulatory arbitrage', where cryptocurrency companies exploit Singapore's name as a basis for operation while operating unchecked in the international market.

This is also part of a broader strategy to strengthen financial integrity, protect Singapore's international brand reputation, and prevent the exploitation of its cryptocurrency-friendly image for illegal gains.

No Legal Loopholes

Section 137 of the FSM Act states that any business registered in Singapore is considered to operate fully within Singapore's territory, even if customers are abroad.

This means that companies cannot evade foreign laws by relying on the Singapore location. MAS's directives have closed all 'loopholes', providing comprehensive transparency in management.

With a policy of no extensions, no gradual transitions, and strict penalties, Singapore sends a strong message: cryptocurrency regulations must be taken seriously — both domestically and internationally.

Source: https://tintucbitcoin.com/singapore-phat-200k-usd-doanh-nghiep-tien-dien-tu/

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