The Monetary Authority of Singapore (MAS) has announced expanded oversight under the Payment Services Act, now requiring crypto service providers – including custodians and wallet operators – to implement stricter safeguards.
As of June 30 2025, any entity incorporated in Singapore – whether a company, partnership, or individual – that provides digital token services to overseas clients must either:
Obtain a Digital Token Service Provider (DTSP) licence under the Financial Services and Markets (FSM) Act 2022, or
Immediately cease operations involving foreign markets.
This directive leaves no room for interpretation. MAS has stated explicitly that there will be no grace period, no transitional arrangements and no extensions.
Any entity falling within the scope of these new rules must comply or shut down cross-border digital asset activity.
Importantly, these restrictions apply regardless of the scale of overseas business activity.
MAS has refused all requests for a phased implementation stating that this would expose the market to unacceptable risks, particularly financial crime.
Violating the June 30 2025 deadline is a criminal offense with up to ~$200,000 and imprisonment for up to three years.
The @MAS_sg has delivered a clear mandate!
ALL entities offering digital token services overseas MUST obtain a licence or halt cross-border operations IMMEDIATELY.
VIOLATING the June 30 2025 deadline is a CRIMINAL OFFENSE with fines of up to ~$ 200K and up to 3 years in jail. pic.twitter.com/DJkM6KK82s
— BitKE (@BitcoinKE) June 24, 2025
Key Provisions:
Mandatory segregation of customer assets to prevent misuse of funds and enhance investor protection.
Expanded licensing regime covering not just domestic but also cross-border transactions and services – regardless of whether the underlying assets or parties reside in Singapore.
Extraterritorial supervision of crypto firms serving Singaporean customers, even if the services are based abroad.
The changes, effective April 2024, align with the broader principles outlined in the Financial Services and Markets Act (FSMA) passed in 2022, and aim to address regulatory blind spots that have emerged as the crypto ecosystem rapidly evolves.
“Segregation of customer assets is a critical step in protecting investors. This is part of a broader shift globally, where regulators are closing gaps exposed by events like the FTX collapse,” says Anton Golub, a digital asset regulatory advisor.
FTX Token ( $FTT) Plummets By Over 90% in 7 Days as FTX Files for Bankruptcy
FTX has filed bankruptcy for https://t.co/WZ8ucfX0l5, FTX US, Alameda Research, and about 130 affiliates. At the same time, the CEO, Sam Bankman-Fried is resigning.https://t.co/MuEkUncpgb
— BitKE (@BitcoinKE) November 12, 2022
What is the FSMA, and Why Does It Matter?
The Financial Services and Markets Act 2022 was a landmark legislative move by Singapore to consolidate and enhance its regulatory framework across financial sectors. In the context of crypto, FSMA:
Empowered MAS to oversee digital token services provided from abroad to local users.
Introduced strict anti-money laundering (AML) and counter-terrorism financing (CFT) standards for service providers, even if they are based outside Singapore.
Increased financial penalties and compliance obligations across a wide range of financial activities.
Allowed for more streamlined enforcement by giving MAS broader and more flexible regulatory authority.
In essence, FSMA extended Singapore’s regulatory reach beyond its borders, ensuring that crypto firms targeting Singaporeans – regardless of where they’re based – must comply with local standards.
Here’s a concise summary of the penalties under Singapore’s Financial Services and Markets Act (FSMA) 2022:
FSMA Non-Compliance Penalties:
) Unlicensed Crypto Services (Including Offshore Firms)
Fines up to SGD 1 million
Daily fines up to SGD 100,000
Up to 10 years imprisonment
) AML/CFT Violations
Fines up to SGD 1 million per breach
Possible license revocation and criminal charges
) False or Misleading Statements to MAS
Fines up to SGD 100,000
Up to 2 years imprisonment
) Failure to Segregate Customer Assets
License suspension, fines, and public reprimand
Customers may sue for compensation
) Broad MAS Enforcement Powers
Authority to search, seize, suspend licenses, and issue prohibition orders
[TECH] CEO of FTX Crypto Exchange, Sam Bankman-Fried, Sentenced to 25 Years in Prison: Sam Bankman-Fried, the Co-Founder and former CEO of crypto exchange, FTX, and trading firm, Alameda Research, was senten.. https://t.co/BmtGBy8Tz6 via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) March 29, 2024
A Global Regulatory Realignment
Singapore’s move is not an isolated case.
Across the globe, jurisdictions are tightening supervision of virtual asset service providers (VASPs) and closing the loopholes that once allowed high-risk behavior to go unchecked.
In the European Union, the Markets in Crypto-Assets (MiCA) regulation will soon come into full effect, mandating strict consumer protection standards, capital requirements, and transparency obligations.
Hong Kong’s VASP licensing regime now requires firms to prove robust risk controls and comply with FATF guidelines.
UAE’s VARA is pushing for asset segregation and enhanced disclosure standards.
Similarly, other jurisdictions are rolling out or refining VASP licensing regimes, often with a strong emphasis on custody protections and cross-border enforceability.
REGULATION | Financial Action Task Force (FATF) Urges Countries to Develop Regulatory Frameworks for Rapidly Growing Virtual Assets
“The findings of the 2023 Targeted Update report, mutual evaluation and follow-up report results indicate that prohibiting VASPs effectively is… pic.twitter.com/ybYWoSYFhM
— BitKE (@BitcoinKE) July 12, 2024
This reflects a broader trend:
Protecting retail investors Encouraging compliant innovation Preventing systemic risks across borders
The era of unregulated crypto experimentation is coming to an end. As the space matures, regulatory convergence is accelerating, creating a more stable environment for institutions, developers, and users alike.
REGULATION | South Africa Adopts the Crypto-Asset Reporting Framework (CARF) Global Standard to Crack Down on Crypto Money Laundering
The framework initially received approval in March 2023 with the 48 countries that embraced this standard recently setting a deadline of 2027… pic.twitter.com/v2sscxJloh
— BitKE (@BitcoinKE) November 16, 2023
Stay tuned to BitKE for deeper insights into the evolving global crypto regulatory space.
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