Key Takeaways
- The regulatory watchdog made it clear that there will be no transitional arrangements, exemptions, or grace periods for digital token service providers (DTSPs) operating without a license
- MAS has also warned that licenses will be granted only under “extremely limited circumstances.”
Monetary Authority of Singapore has put out a new directive that firms offering crypto services to overseas clients must register by June 30, 2025, or cease operations.
The regulatory watchdog made it clear that there will be no transitional arrangements, exemptions, or grace periods for digital token service providers (DTSPs) operating without a license under Section 137 of the Financial Services and Markets (FSM) Act 2022.
MAS noted that any Singapore-incorporated individual, partnership, or company that offers digital token (DT) services to clients overseas must either obtain a DTSP license or cease all such activities by the deadline. Failure to comply could result in fines up to S$250,000 (US$185,000) and imprisonment for up to three years.
MAS first proposed the licensing framework through a public consultation in October 2024. Feedback from the digital asset sector highlighted concerns over the short application window and the absence of interim relief. Despite these appeals, MAS stood firm, reiterating that unlicensed DTSPs must stop overseas services by June 30, without exception.
The final framework, released on May 31, imposes strict financial and operational requirements on applicants. A minimum base capital of Singapore dollars $ 250,000, an annual license fee of S$10,000, and mandatory annual audits of DT transactions are just the start. Licensees must also prove significant management experience and a clear understanding of Singapore’s AML/CFT standards.
MAS has also warned that licenses will be granted only under “extremely limited circumstances.”
Adding to the complexity, only firms already licensed or exempt under Singapore’s Securities and Futures Act, Financial Advisers Act, or Payment Services Act may continue providing services without falling afoul of the new rules.
The current move follows the April 2022 passage of the FSM Act, which empowered MAS to regulate digital asset firms incorporated in Singapore—even if they only served clients overseas. MAS stated that crypto firms could exploit gaps in regulatory coverage by registering locally while conducting high-risk operations beyond Singapore’s jurisdiction.
Similar to Singapore, Thailand’s SEC had also recently stated that crypto bigwigs, including Bybit, 1000X, CoinEx, OKX, XT.COM will be blocked in the country from June 28, 2025, if they don’t secure proper operating licenses.
