Singapore Directs Cryptocurrency Companies to Cease International Operations by June 30th
The Monetary Authority of Singapore (MAS) has set a deadline for Digital Token Service Providers (DTSPs) that serve only overseas customers to obtain a license by June 30, 2025 [1]. This regulatory directive marks an important enforcement milestone for the regulation of digital token services in Singapore.
Under the new directive, DTSPs catering exclusively to overseas clients must secure a license from MAS by the stated deadline. The licensing requirement is aimed at ensuring proper oversight, consumer protection, and market integrity in the digital token space.
The MAS did not specify the exact nature of the penalties for non-compliance with the new directive [2]. However, it is crucial for crypto firms based in Singapore to note that they are presumed to be conducting operations within the country and must obtain the appropriate license to offer financial services, including digital token services, according to section 137 of the Financial Services and Markets Act (FSM Act) [7].
The directive also states that DTSPs, which are subject to a licensing requirement under section 137 of the FSM Act, must suspend or cease carrying on a business of providing digital token services outside Singapore by June 30, 2025 [3].
The MAS received suggestions for a transitional period, temporary exemption, or expedited review process for Digital Token Service Providers from industry participants. However, the authority reiterated its stance against providing a transitional period for overseas-focused DTSPs [8].
The new directive comes after the MAS reviewed public feedback on its proposed framework under the FSM Act [6]. It remains unclear whether the new directive applies to foreign crypto firms operating within Singapore [4, 9].
In a separate announcement, the MAS confirmed that no grace period will be offered to local DTSPs currently serving international clients [5]. Only firms already licensed or exempted under existing financial regulations will be allowed to continue operating without violating the new framework.
Industry participants have expressed concerns over the short four-week notice period for DTSPs to prepare and submit license applications [1]. The new DTSP regulations will take effect at the end of June [1, 3].
References: 1. MAS sets deadline for overseas digital token service providers to obtain license 2. MAS clarifies penalties for non-compliance with new digital token service provider regulations 3. MAS tightens regulations for digital token service providers 4. MAS clarifies whether new directive applies to foreign crypto firms operating within Singapore 5. MAS confirms no grace period for local digital token service providers serving international clients 6. MAS reviews public feedback on proposed framework under the Financial Services and Markets Act (FSM Act) 7. Section 137 of the Financial Services and Markets Act (FSM Act) 8. MAS reiterates stance against providing a transitional period for overseas-focused digital token service providers 9. MAS yet to clarify whether new directive applies to foreign crypto firms operating within Singapore
- To adhere to the new security measures, Digital Token Service Providers (DTSPs) catering exclusively to overseas clients must secure a license from the Monetary Authority of Singapore (MAS) by June 30, 2025, as per the regulation under the Financial Services and Markets Act (FSM Act) [1, 7].
- The licensing requirement for DTSPs aims to ensure industry-wide security, consumer protection, and market integrity in the financial business of digital token services [2, 3].
- DTSPs, subject to a licensing requirement under section 137 of the FSM Act, must cease providing digital token services outside Singapore by June 30, 2025, and comply with the regulation to maintain their operations within the industry [3].
