{"id":12822,"date":"2025-06-06T15:58:33","date_gmt":"2025-06-06T13:58:33","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=12822"},"modified":"2025-06-06T15:58:33","modified_gmt":"2025-06-06T13:58:33","slug":"mas-announces-stricter-regulations-on-exclusive-foreign-digital-token-services","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/06\/06\/mas-announces-stricter-regulations-on-exclusive-foreign-digital-token-services\/","title":{"rendered":"MAS Announces Stricter Regulations on Exclusive Foreign Digital Token Services"},"content":{"rendered":"\n
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The Monetary Authority of Singapore (MAS) has illuminated its Digital Token Service Providers (DTSPs) framework, following widespread alarm within the sector regarding a possible prohibition on crypto entities catering to international patrons.<\/p>\n

In a June 6 declaration<\/a>, MAS reaffirmed that commencing June 30, crypto firms \u201coffering services exclusively to clients outside of Singapore concerning digital payment tokens and capital market product tokens will be required to secure a license.\u201d<\/p>\n

Nonetheless, the authority cautioned that such licenses will be issued only in \u201cvery rare circumstances.\u201d<\/p>\n

\u201cMAS has established stringent criteria for licensing and will typically not grant a license,\u201d the organization noted, citing the challenges of overseeing offshore businesses and risks associated with money laundering as primary issues.<\/p>\n

MAS is incapable of effectively regulating such entities,\u201d the authority added. Consequently, firms that cannot secure licenses will \u201cbe required to halt their regulated operations.\u201d<\/p>\n

Related: <\/strong><\/em>UK FCA suggests lifting restriction on crypto ETNs for retail investors<\/strong><\/em><\/a><\/p>\n

The onset of a crypto migration?<\/h2>\n

The crypto landscape took heed when the MAS established a deadline of June 30<\/a> for local crypto service providers to halt offering digital token services to international markets earlier this month.<\/p>\n

The new regulations have already ignited a transformation. India-focused but Singapore-based crypto exchange WazirX declared that it will be relocating its operations to Panama<\/a>, shortly after the MAS announced the deadline.<\/p>\n

When the deadline was disclosed, Hagen Rooke, a partner at Gibson, Dunn & Crutcher, indicated that licenses would be issued only in exceptional cases. In a LinkedIn post, he mentioned<\/a>:<\/p>\n

\u201cThe MAS will issue licenses under the new framework solely in extremely limited situations (as this operational framework typically raises regulatory concerns, e.g., AML\/CFT-related).\u201d<\/p><\/blockquote>\n

Related: <\/strong><\/em>Europe prepares to regulate DeFi in 2026 as MiCA leaves sector in uncertainty<\/strong><\/em><\/a><\/p>\n

Singapore intensifies crypto oversight<\/h2>\n

Recent actions by Singapore regulators imply that local authorities aim to enforce stricter governance over the local crypto sphere. Today\u2019s announcement clarified that crypto companies catering to clients in Singapore \u201care already under regulation,\u201d so the guidelines have been expanded to those serving clients overseas. Nevertheless, MAS stated not all crypto-related services are impacted:<\/p>\n

\u201cProviders of services concerning other tokens, such as those exclusively utilized as utility and governance tokens, are exempt from licensing or regulation under the new regime, thus are not affected.\u201d<\/p><\/blockquote>\n

Singapore\u2019s regulatory evolution follows May reports indicating that digital assets are in high demand within the nation. Crypto awareness in Singapore has reached unprecedented levels, with 94% of participants in a recent survey indicating recognition<\/a> of at least one digital asset.<\/p>\n