In a nutshell
- The Monetary Authority of Singapore (MAS) has given a deadline of June 30 for digital asset businesses based in Singapore, but serving overseas clients, to obtain a license or else shut down. They would be doing this to address financial crime risks.
- These regulations will apply to companies formed in Singapore or those with employees based here, that cater only to foreign clientele. There are no exemptions or grace periods provided.
- This move comes as part of a global trend in cracking down on crypto firms, with recent penalties like the one AUSTRAC handed to Cointree for delays in filing money laundering reports being a prime example.
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Singapore Monetary Authority to Prohibit Unauthorized Cryptocurrency Services Operating from Abroad
Policy Takedown
In a snap of its fingers, MAS announced on May 30th a full-scale implementation of Section 137 of the Financial Services and Markets Act (FSM Act). Essentially, this allows them to license Digital Token Service Providers (DTSPs) within Singapore's borders.
This means office-based or residence-based organizations, or any firms with staff in the Little Red Dot that cater solely to international clients, are now under MAS' purview.
"No excuses, no delays," MAS states, warning firms continuing operations without a license post-June 30th will be committing an offense punishable by penalties.
Their move follows a 4-week notice period accompanying the published document, urging affected firms to take immediate action.
The document echoes an industry feedback received back in October 2024 regarding MAS' consultation paper seeking views on regulating DTSPs across borders. MAS notes that most respondents supported licensing such firms, though some pushed for exemptions, particularly for trading, OTC services, and overseas infrastructure use. However, the watchdog dismissed these suggestions, insisting on technology-neutral, activity-based regulation to plug regulatory loopholes.
Their motive? Bamm! MAS points to escalating risks of money laundering and terrorism financing associated with borderless digital token services. Moreover, the regulator flags potential reputational risks to Singapore if it remains a soft spot for crypto businesses operating overseas without controls, due to their non-domestic presence.
So, get ready, crypto gang! Here's what you need to comply with, or face the music:
- A base capital equivalent to SGD 250,000
- Full-fledged customer re-onboarding with fresh due diligence
- The enforced FATF Travel Rule
- Toe the line on stringent technology risk standards
Be mindful, folks, as freelancers and independent consultants assisting overseas crypto firms may be deemed to be conducting regulated business from Singapore, putting them within MAS' jurisdiction.
As Singapore phases out unlicensed players, other territories are ramping up the heat too. Last month, Australia's AUSTRAC fined Melbourne-based Cointree AUD 63,600 for late AML reports, pointing to delays hampering swift law enforcement actions.
Edited by Stacy Elliott.
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Licensing Landscape
As of June 2nd, 2025, MAS granted a total of 33 DTSP licenses, with majors like Coinbase, Anchorage, among the licensees. Despite Cumberland SG receiving in-principle approval in March, the firm is yet to secure a full license.
With tightened regulations, MAS prioritizes compliance with international standards, financial stability, and regulatory oversight in countries where services are offered. A select few will be invited to the party, so brace yourselves, crypto network, and be ready to roll with the MAS' rules!
- The Monetary Authority of Singapore (MAS) is implementing Section 137 of the Financial Services and Markets Act (FSM Act), allowing them to license Digital Token Service Providers (DTSPs) within Singapore's borders.
- Firms based in Singapore or those with employees based there, catering solely to international clients, are now under MAS' purview and must comply with MAS regulations by June 30th.
- Companies subject to these regulations include office-based and residence-based organizations, as well as freelancers and independent consultants assisting overseas crypto firms.
- Unless they comply, firms continuing operations without a license post-June 30th will be committing an offense punishable by penalties.
- MAS is taking this action to address rising risks of money laundering and terrorism financing associated with borderless digital token services, and to maintain Singapore's reputation as a responsible player in the crypto industry, finance, and business.
