The Monetary Authority of Singapore (MAS) has officially confirmed a near-ban on digital token services offered exclusively to foreign clients, marking a significant shift in the country’s stance on crypto regulation.
New Licensing Requirement from June 30
In a June 6 announcement, MAS stated that starting June 30, 2025, crypto service providers operating in Singapore must be licensed to serve only overseas customers. This directive comes under the newly outlined Digital Token Service Providers (DTSPs) regime.
“MAS has set the bar high for licensing and will generally not issue a licence,” the agency emphasized, highlighting the risks involved in supervising offshore activities and the potential for money laundering and terrorism financing.
Near-Impossibility of Licensing for Foreign-Only Services
While the new rules do not explicitly ban foreign-only crypto operations, the MAS clarified that licenses will be issued only in “extremely limited circumstances.” This essentially means most crypto firms targeting overseas markets from Singapore will not qualify under the new framework.
“MAS is unable to effectively supervise such persons,” the statement added, suggesting that compliance oversight is a major regulatory concern.
As a result, companies that cannot obtain a license must stop all regulated digital token activities. This policy shift is expected to affect dozens of local crypto entities that serve clients outside Singapore.
Industry Impact and Relocation
The regulation has already led to major operational changes. Notably, Singapore-based exchange WazirX, which caters primarily to the Indian market, announced it is relocating its operations to Panama. More crypto firms are expected to follow as the June 30 deadline approaches.
Crypto companies without the required license will no longer be allowed to serve overseas clients from Singapore.
Focus on Local Oversight and Risk Control
MAS’s move reinforces its broader mission to become a responsible and tightly regulated fintech hub. The regulator seeks to strengthen AML (Anti-Money Laundering) frameworks while ensuring that firms operating in Singapore are accountable and transparent.
This regulatory approach aligns with global trends where jurisdictions are demanding greater compliance, reporting, and licensing from digital asset firms.
Conclusion
Singapore’s latest regulatory update reflects a stricter stance on offshore digital token operations. By requiring licensing under highly restrictive conditions, the MAS is essentially closing the door on unregulated cross-border crypto services, pushing firms to either comply or relocate. This move marks a pivotal moment for crypto businesses operating out of Singapore with a foreign-only focus.