SINGAPORE: Singapore’s financial regulator, the Monetary Authority of Singapore (MAS), has mandated that all Singapore-based crypto firms serving customers overseas must obtain a licence by June 30, 2025, or cease such operations immediately.
This latest move extends MAS’s Digital Payment Token (DPT) framework to cover “digital token service providers” (DTSPs). These entities operate from Singapore but only serve overseas clients. The move closes a regulatory loophole perceived as a conduit for money laundering and illicit finance.
MAS’s May 30 consultation response confirms that any provider of digital token services outside Singapore must hold a licence under the Financial Services and Markets Act (FSMA) by Jun 30 or suspend activities.
The central bank said licences will be granted only in “extremely limited circumstances.” This reflects MAS’s concern about its ability to supervise offshore activities and the heightened AML/CFT risks involved. Non-compliance carries penalties of up to S$250,000 in fines and up to three years’ imprisonment.
The Jun 30 deadline has prompted offshore-focused exchanges such as WazirX to announce relocation plans, while others weigh exit strategies. The ban also risks hundreds of jobs among unlicensed operators, according to industry observers.
MAS has emphasised that DPT providers who are already licensed can continue to service both domestic and international customers without interruption. While suggestive of a reversal of its crypto-friendly stance, Singapore’s central bank has remained consistent in its compliance push.
Singapore’s Financial Services and Markets Act (FSMA) states that Singapore-based businesses offering digital token services to clients overseas must be licensed. Simply put, the central bank has completed public consultations and has informed service providers that their unlicensed tenure is over.
In a statement on Jun 6, MAS explained: “Due to the higher risks presented by the specific circumstances set out above, existing DTSPs serving only customers outside of Singapore will be required to cease this activity when the regime comes into effect on 30 June 2025. MAS’ position on this has been consistently communicated for a few years since the first response to public consultation issued on 14 February 2022 and in subsequent publications on 4 October 2024 and 30 May 2025.”
The move aligns with jurisdictions like Singapore, Thailand, Dubai, Hong Kong, and others. This is part of a broader global crackdown. Stricter licensing and risk-management standards target money laundering and terrorism financing.
For instance, in the European Union (EU), the EU’s Markets in Crypto-Assets (MiCA) regulation has been in force since June 2023. It similarly imposes authorisation, transparency, and reserve-backing requirements on crypto-asset service providers in member states. Malta and Luxembourg have already begun licensing major exchanges under MiCA, illustrating a move towards harmonised oversight in mature financial centres.
Meanwhile, in the U.S., the STABLE Act and GENIUS Act aim to establish comprehensive stablecoin frameworks, mandating licensing, reserve standards, and anti-money laundering measures within one year of enactment.
Closer to home, in the rival business hub of Hong Kong, its Legislative Council passed the Stablecoins Bill on May 21, 2025. This institutes a licensing regime for fiat-referenced stablecoin issuers. It is set to take effect on Aug 1, 2025.
This framework requires robust reserve management, redemption protocols, and risk-based supervision by the Hong Kong Monetary Authority (HKMA). It also aligns with Singapore’s emphasis on safeguarding financial integrity.
By enforcing the Jun 30 deadline, MAS is aligning Singapore with global regulations and safeguarding the reputation of its financial centre as a transparent, well-regulated crypto hub.