The Monetary Authority of Singapore (MAS) has issued a strong directive to the local cryptocurrency industry, mandating that all unlicensed digital asset providers cease their overseas operations by June 30, 2025, unless properly authorized under Singapore’s Financial Services and Markets (FSM) Act 2022.


This regulatory move is aimed at reinforcing Singapore's reputation as a trusted financial hub and ensuring that local firms engaging in crypto-related activities maintain the highest standards of compliance and accountability—even when operating beyond the country’s borders.



New Licensing Rules for Overseas Crypto Operations


Under the new framework, any crypto firm based in Singapore that provides digital token services abroad must apply for a Digital Token Service Provider (DTSP) license once the relevant provisions of the FSM Act take effect later this month.

The MAS emphasized that no grace period will be granted. Companies have had ample time to prepare for the regulatory change since the law was enacted in 2022. Those that fail to comply must cease all overseas digital token services immediately.

This applies not only to companies but also to independent individuals operating in the crypto space, depending on the nature and scale of their activities conducted from within Singapore.



Exemptions and Existing Licenses

Only crypto firms that are already licensed or exempted under existing financial regulations—such as the Securities and Futures Act, the Financial Advisers Act, or the Payment Services Act—will be exempt from applying for the new DTSP license. These firms have already met stringent regulatory requirements and are considered in compliance with Singapore’s financial laws.



Regulatory Objectives: Balancing Innovation and Risk Management


In its official statement, MAS reaffirmed its commitment to fostering responsible innovation in the digital asset space while safeguarding consumers and financial stability.


“This approach strikes a balance between promoting innovation and safeguarding consumers,” stated MAS. “Our goal is to create a secure and transparent digital token ecosystem that protects users from fraud, systemic risk, and financial crime.”


As part of this effort, licensed DTSPs will be subject to several strict compliance requirements, including:


Holding a minimum base capital of SGD 250,000 (~USD 185,000)

Conducting robust customer due diligence (CDD) procedures

Adhering to the Financial Action Task Force (FATF) Travel Rule, which requires the sharing of customer information during transactions

Complying with Singapore’s Technology Risk Management (TRM) standards, to ensure operational security and cyber resilience

Enforcement Measures and Penalties for Violations

Non-compliance will result in significant penalties. Under Section 137 of the FSM Act, any Singapore-based entity found operating digital token services without a license may face:

  • Fines of up to SGD 250,000 (approx. USD 200,000)

    Imprisonment for up to three years

    Both, in severe cases


The MAS has also stated that it will ramp up surveillance and investigate attempts to circumvent regulations, including disguised or indirect business arrangements.



Current Licensing Landscape and Outlook

To date, MAS has granted 33 digital payment token licenses, including to major players such as Coinbase and Anchorage, which have met Singapore’s high regulatory standards.

This latest move by the MAS is part of a broader effort to combat money laundering, terrorism financing, and regulatory arbitrage within the rapidly evolving digital assets sector.



Conclusion

With the deadline fast approaching, Singapore-based crypto firms must take urgent steps to ensure compliance or risk being shut down and penalized. MAS’s clear stance reaffirms the nation’s commitment to being a forward-looking yet highly regulated financial ecosystem, setting a global benchmark for responsible crypto innovation.