Singapore’s central bank, the Monetary Authority of Singapore (MAS), has mandated that local crypto firms must cease offering overseas digital token (DT) services by June 30, 2025, or face severe penalties. The directive marks a significant tightening of Singapore’s crypto regulatory framework.
No Transitional Period for Overseas Crypto Operations
MAS released the deadline in its response to industry feedback on the proposed licensing regime for Digital Token Service Providers (DTSPs) under the Financial Services and Markets (FSM) Act of 2022.
All Singapore-based firms providing digital token services to foreign markets must stop operations or obtain a license before June 30, 2025.
MAS emphasized that there will be no transitional arrangements and that the licensing requirement applies regardless of whether overseas token activity is a core business or not.
Penalties for Non-Compliance Could Reach $200,000
Violating firms may face fines of up to 250,000 Singapore dollars (approx. $200,000 USD) and imprisonment for up to three years.
Under Section 137 of the FSM Act, businesses incorporated or operating in Singapore are presumed to be under MAS jurisdiction. This includes individuals, partnerships, or companies, even if their token-related services are provided outside the country.
Only firms already licensed or exempt under Singapore’s existing financial laws—such as the Securities and Futures Act, Financial Advisers Act, or Payment Services Act—may continue operations without conflict.
Licensing Will Be Extremely Limited
MAS will grant licenses in rare cases only, primarily due to anti-money laundering (AML) and counter-terrorism financing (CFT) concerns.
Legal experts have advised crypto firms to consider operational restructuring to remove Singapore-based touchpoints. Hagen Rooke, a partner at Gibson, Dunn & Crutcher, warned that MAS is unlikely to approve licensing applications unless exceptional criteria are met.
Singapore Tightens Oversight to Address Cross-Border Risks
This regulatory move stems from Singapore’s ongoing efforts to close loopholes in global crypto operations. By enforcing strict compliance under the FSM Act, MAS aims to ensure that firms registered in Singapore do not engage in unregulated activities abroad.
MAS is concerned about regulatory arbitrage, where companies exploit Singapore’s legal structure to offer unregulated services in other jurisdictions.
Conclusion
Singapore’s June 30 deadline represents a landmark shift in crypto regulation, signaling the government’s commitment to enhanced global accountability and financial security standards.
Firms must now act swiftly to comply or face financial and legal consequences under the new framework.