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Singapore crypto regulations and the June 30 deadline
The Monetary Authority of Singapore (MAS) has issued a definitive requirement stating that all Singapore-based organizations providing digital token services to foreign clients must secure a DTSP license or immediately cease cross-border activities.
Effective June 30, 2025, any entity registered in Singapore — be it a corporation, partnership, or individual — that offers digital token services to international clients must either:
- Obtain a Digital Token Service Provider (DTSP) license in accordance with the Financial Services and Markets (FSM) Act 2022, or
- Instantly discontinue dealings with foreign markets.
This directive allows no room for ambiguity. MAS has clearly stated that there will be no grace period, transitional provisions, or extensions.
Any entity that falls under these new regulations must comply or halt cross-border digital asset operations.
Crucially, these limitations apply irrespective of the volume of overseas business activity. Even firms for which international clients contribute a minimal share of income are impacted. MAS is closing a significant regulatory loophole that once permitted Singapore-based crypto companies to serve global users while sidestepping stricter regulations in other territories.
Did you know? MAS mandates a minimum base capital of SGD 250,000 for DTSP applications (even for partnerships or individuals), which must be maintained as a cash deposit or capital contribution.
Who qualifies as a digital token service provider under Singapore’s new law?
Singapore’s new rules broadly categorize DTSPs to encompass any entity providing token-related services internationally, regardless of magnitude, structure or direct user engagement.
According to Section 137 of the FSM Act, a Digital Token Service Provider (DTSP) comprises any individual or enterprise participating in:
- The transfer of digital payment tokens.
- The conversion between digital tokens and fiat or alternative tokens.
- The custody of tokens on behalf of others.
- The marketing of any token-related service.
MAS has deliberately crafted the definition inclusively. It covers centralized crypto exchanges, DeFi platforms, wallet providers, token issuers, and even non-crypto businesses providing token-related services to clients outside Singapore.
This signifies that a Singapore-based startup executing a marketing initiative for a foreign crypto project may still qualify as a DTSP, even if they don’t directly handle user funds.
The regulatory lens emphasizes the place of incorporation, rather than the location of servers or where the end-user is situated.
MAS has highlighted that the business model or revenue scale does not exempt one from compliance. Even small entities, part-time projects, or side ventures involving crypto fall within the requirement.
The agency has explicitly cautioned that it will take enforcement actions against any DTSP that has not registered or ceased overseas activities by the June deadline.
Did you know? Pure utility or governance token providers are exempt from DTSP licensing, unlike exchanges or custodial entities dealing with payment tokens.
MAS crypto deadline 2025
In spite of industry lobbying, the MAS has denied all propositions for staggered implementation.
Crypto service providers and industry associations had appealed to the regulator for a transition period, a temporary exemption mechanism, or at the very least, a expedited license process.
Many contended that the abrupt timeline — often less than a month — provided inadequate time to reorganize or wind down services.
MAS dismissed these apprehensions, proclaiming that allowing token services to persist during a transition would subject the market to unacceptable risks, particularly concerning financial crime.
Consequently, the regulatory update represents a compliance precipice. Firms must either:
- Withdraw from the international crypto market entirely, or
- Finalize the licensing process before June 30.
No exceptions will be made.
Singapore $200K crypto fine and prison risks
Noncompliance with the June 30 deadline is a criminal offense under Singapore law.
Organizations that continue to operate as DTSPs for foreign clients without a valid license will violate Section 137 of the FSM Act and could face:
- Fines amounting up to SGD 250,000 (approximately USD 200,000), and
- Imprisonment for a duration of up to three years.
MAS has emphasized that these penalties will be enforced regardless of the entity’s size or the extent of the infraction.
This escalates the decision from a business compliance matter to a legal survival issue. You are either fully licensed, or you are in violation. Additionally, as MAS is anticipated to issue licenses only sparingly, citing ongoing AML/CFT concerns, many businesses may not qualify.
Singapore enforces a de facto ban on new crypto licenses amid AML concerns
Although MAS has not officially halted licensing, it has made it clear that approvals for Digital Token Service Providers (DTSPs) will be exceedingly uncommon.
In a June 6, 2025 announcement, the Monetary Authority of Singapore revealed that licenses would only be granted in “extremely limited circumstances,” owing to unresolved Anti–Money Laundering (AML) and Counter–Terrorism Financing (CFT) issues.
MAS has made its stance unequivocal: The threshold for licensing is now intentionally elevated. A representative confirmed that MAS “will generally not issue a license” due to the inherent challenges associated with regulating offshore token services and the related legal risks in crypto in 2025.
This effectively enforces a de facto licensing prohibition. Unless a crypto organization in Singapore possesses both exceptional compliance infrastructure
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and a robust operational rationale, it is improbable to obtain regulatory endorsement. The cryptocurrency licensing obstacles currently encountered by enterprises in the city-state rank among the most rigorous globally.
MAS crypto compliance regulations: What is driving the crackdown?
Singapore’s regulatory enforcement arises from a pivotal concern: regulatory exploitation.
MAS has long been apprehensive that cryptocurrency enterprises would establish themselves in Singapore, gaining legitimacy from its financial ecosystem, while catering to international clients under looser or nonexistent regulatory oversight.
This gap permitted companies to promote themselves as MAS-compliant while not adhering to crypto service provider regulations in the nations where they operate.
To address this, the Financial Services and Markets Act 2022 granted MAS direct governance over cross-border digital token transactions, through Section 137. This legal framework empowers the authority to enforce complete compliance requirements, irrespective of where users, servers, or assets are situated.
MAS seeks to uphold Singapore’s reputation as a reliable financial center.
Did you know? MAS announced its licensing mandate just four weeks ahead of its implementation.
Wider ramifications of Singapore crypto regulations
The immediate effects of MAS’s policy alteration are already apparent.
One of the most prominent instances is WazirX, a cryptocurrency exchange that was previously registered in Singapore but mainly served clients in India. Following a Singapore court’s refusal to permit its restructuring, the company shifted its operations to Panama. The parent organization was restructured as Zensui, a new entity based outside Singapore.
A mounting number of crypto firms are reorganizing or moving to offshore locations like Panama, Hong Kong, and Dubai, all regarded as more lenient environments for digital asset enterprises.
Major industry players such as Bybit and Bitget have begun withdrawing teams from Singapore, citing uncertainty over licensing and MAS crypto compliance rules as significant hurdles.
This trend is termed a “crypto exodus,” as companies pursue jurisdictions with more adaptable frameworks.
In the meantime, neighboring nations like Thailand are testing more accessible cryptocurrency policies, permitting retail usage such as credit card-based crypto transactions for tourists, while the Philippines is advancing efforts to improve crypto licensing and AML supervision.
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