6
June
2025
MAS makes sudden move to restrict crypto licensing for foreign firms
The Monetary Authority of Singapore (MAS) has tightened its approach to the regulation of Digital Token Service Providers (DTSPs) under the 2022 Financial Services and Markets Act (FSMA). On June 6, 2025 the MAS announced that DTSPs operating in Singapore but serving only foreign customers must obtain a license by June 30, 2025, or shut down. Citing money laundering risks, the MAS emphasized the licensing threshold would be high but that the agency “will generally not issue a license.” Failure to comply or cease operations is punishable by heavy fines and imprisonment. The new requirement does not apply to licensed DTSPs serving customers in Singapore (who are already regulated) or only distributing utility or governance tokens.
Singapore had a reputation as a hub for the digital assets industry, but many firms could now be forced to exit the jurisdiction on relatively short notice. The MAS issued a consultation paper in October 2024, outlining newly proposed FSMA requirements for DTSPs. Although the comment period on the MAS’s proposed rules closed in November, the MAS has yet to finalize the rules.
Last updated 06/13/2025.