Singapore requires all digital token service providers serving overseas clients to obtain a license by June 30, 2025
From Cointelegraph
June 22, 2025 10:05:00 AM:
The Monetary Authority of Singapore (MAS) mandates all Singapore-based digital token service providers serving overseas clients to obtain a DTSP license by June 30, 2025, or cease operations immediately. MAS requires a minimum base capital of SGD 250,000 for applications. Entities of all sizes must comply with the new rules.
Singapore’s new law defines Digital Token Service Providers (DTSPs) broadly to include any entity offering token-related services abroad. MAS intentionally draws the definition wide to encompass centralized crypto exchanges, DeFi platforms, and even non-crypto firms offering token-related services to overseas clients.
MAS has set a strict deadline of June 30, 2025, for compliance with the new rules. Despite industry lobbying for a transition period, MAS refused all requests for phased implementation. Firms must exit overseas markets or complete the licensing process by the deadline, with no exceptions granted.
Violating the June 30 deadline is a criminal offense in Singapore. Firms operating as DTSPs without a valid license face fines of up to SGD 250,000 and imprisonment for up to three years. MAS emphasizes that compliance is essential for all businesses, regardless of size or scope of operations.
MAS has imposed a de facto ban on new crypto licenses amid AML concerns. Approvals for DTSPs will be extremely rare due to unresolved AML and CFT concerns. Unless a crypto company in Singapore meets elite compliance standards, it is unlikely to receive regulatory approval, making compliance challenging.
MAS’s regulatory clampdown aims to combat regulatory arbitrage and protect Singapore’s reputation as a trusted financial hub. The Financial Services and Markets Act 2022 gives MAS direct oversight of cross-border digital token activity. MAS aims to close regulatory gaps allowing firms to operate under weaker oversight in other jurisdictions.
The broader implications of Singapore’s crypto regulations are already visible, with firms like WazirX relocating operations to Panama. More crypto companies are restructuring or relocating to offshore jurisdictions due to licensing uncertainty. Neighboring countries like Thailand and the Philippines are exploring more flexible crypto policies.
Read more at Cointelegraph: Singapore New Crypto Rules: $200K Fines, Jail Risk