Singapore’s MAS Revises AML Requirements for Licensed Digital Token Service Providers

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On July 1, 2025, the Monetary Authority of Singapore (MAS) issued revised Guidelines to MAS Notice FSM‑N27, with updated AML/CFT obligations in accordance with the country’s Digital Token Service Provider (DTSP) licensing system. This update reflects changes to the Singaporean regulator’s broader DTSP licensing rules under Part 9 of the Financial Services and Markets Act 2022.

FSM‑N27 applies to licensed Singaporean DTSPs, meaning firms that provide digital token services such as custodial wallets and digital asset exchanges. The notice offers greater guidance on risk-based approaches, reporting, and due diligence.

Suggested read: Singapore Crypto Regulations—All You Need to Know in 2025

Both local and foreign entities offering digital token services from Singapore must comply with the country’s changing approach to digital assets or risk facing criminal penalties. The guidelines set broad standards for firms on compliance frameworks, including implementing risk assessments, ongoing due diligence, reporting, and internal audits. 

The shift toward tighter regulation of DTSPs in Singapore is part of a broader initiative to tighten regulations following high-profile crypto firm collapses in the country. Back in May 2025, MAS ordered crypto firms without DTSP licenses to cease overseas operations by June 30.

These developments reflect wider Singaporean concerns of DTSPs’ risk of abuse for money laundering, terrorism financing, or proliferation financing due to the “internet-based and cross-border nature of such services.” MAS argues 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 MAS has updated guidelines for DTSPs, it earlier warned “there will be extremely limited circumstances under which MAS will consider granting an applicant a [DTSP] licence.”