Photo credit: Sean Pavone / Shutterstock.com
The Monetary Authority of Singapore (MAS) has mandated that all cryptocurrency firms in the country halt overseas digital token (DT) activities by 30 June 2025, unless they obtain a Digital Token Service Provider (DTSP) license.
This directive is detailed in MAS’s “Response to Feedback Received on Proposed Regulatory Approach, Regulations and Notices for Digital Token Service Providers issued under the Financial Services and Markets Act 2022,” published on 30 May 2025. The document emphasizes there will be no transitional arrangements, meaning firms must comply by 30 June or face penalties.
This move is in response to wider Singaporean concerns of DTSPs being susceptible to money laundering or terrorism financing risks due to the “internet-based and cross-border nature of such services.” The authority believes these risks make it more likely for DTSPs to be engaged in or misused for illicit purposes that could damage Singapore’s reputation as a financial hub.
While the MAS has said DTSPs can continue to operate overseas after 30 June if they have a DTSP license, such licensing will only be approved in “a prudent and cautious manner and there will be extremely limited circumstances under which MAS will consider granting an applicant a licence.”
This directive is also part of a broader initiative to tighten regulations following high-profile crypto firm collapses in the country.
Violators of the new rule could face fines of up to 250,000 Singaporean dollars (approximately USD 195,000) and up to three years in prison. Only firms with a DTSP license or those exempted under existing financial laws will be permitted to continue operations.
