Singapore’s central bank, the Monetary Authority of Singapore (MAS), has issued a sharp directive requiring all crypto firms based in the country—but serving exclusively overseas clients—to obtain a license by June 30 or shut down operations entirely. The rule applies even to companies that do not engage with local users but are incorporated in Singapore or employ staff based in the city-state.
The new mandate follows MAS’s decision to activate Section 137 of the Financial Services and Markets Act (FSM Act), granting the regulator authority over Digital Token Service Providers (DTSPs) that operate from Singapore but serve foreign markets.
In its May 30 policy statement, MAS made clear that no grace period would be offered. The four-week window was deemed sufficient for firms to comply or exit. Entities that fail to meet the deadline will be in violation of the law and subject to serious penalties.
“There will be no transitional arrangement,” MAS stated, delivering a strong warning to crypto companies that regulatory arbitrage under the guise of foreign-only services will not be tolerated.
MAS Dismisses Exemption Requests, Enforces Uniform Rules for Crypto Activity
In response to feedback from its October 2024 consultation paper, MAS doubled down on its stance by refusing exemptions for specific crypto business models. While most respondents supported stricter oversight of DTSPs with cross-border operations, some had requested carve-outs for activities like proprietary trading, over-the-counter (OTC) services, or services using infrastructure outside Singapore.
MAS rejected all such proposals, arguing that crypto regulation must remain “technology-neutral” and “activity-based” to avoid loopholes. The authority reiterated that the borderless nature of digital token services presents heightened risks for financial crime and reputational harm—risks Singapore is unwilling to overlook.
To reinforce its position, MAS has introduced several new compliance measures:
- A base capital requirement of SGD 250,000 (approximately $185,000 USD).
- Mandatory customer due diligence (CDD) reviews.
- Full application of the FATF’s Travel Rule, which mandates transparency in digital asset transfers.
- Adherence to updated technology risk management standards.
MAS also issued a warning to individuals acting as consultants or freelancers for foreign crypto firms. If they offer regulated services from within Singapore, they too may fall under the licensing framework.
Singapore’s Move Mirrors Global Crackdown on Crypto Compliance
Singapore’s clampdown mirrors a growing international trend of increased crypto regulation. As MAS tightens control over offshore-facing firms, other jurisdictions are following suit to combat illicit financial activity and enforce stricter compliance standards.
In Australia, financial intelligence agency AUSTRAC recently fined Melbourne-based crypto exchange Cointree AUD 75,120 for delayed reporting of suspicious transactions—a lapse that authorities said hindered investigations into potential money laundering.
This broader regulatory pivot underscores a key shift: regulators are now scrutinizing not just domestic operations, but the global footprint of crypto firms based within their jurisdictions.
As of June 2, 2025, MAS has granted digital payment token licenses to 33 firms, including major players like Coinbase and Anchorage, signaling its preference for companies with robust compliance infrastructures.
By raising the bar for regulatory approval, Singapore is solidifying its position as a credible and innovation-friendly digital asset hub—one that welcomes growth but not at the expense of financial integrity.
Quick Facts
- MAS requires all Singapore-based crypto firms serving overseas clients to obtain a license by June 30, 2025.
- No transitional grace period will be offered, and non-compliant firms face penalties.
- New regulations include SGD 250,000 capital requirements, Travel Rule implementation, and tech risk controls.
- 33 firms, including Coinbase and Anchorage, have received digital token licenses under MAS’s framework.
- Other jurisdictions, including Australia, are also tightening crypto compliance oversight.
