The Monetary Authority of Singapore (MAS) has officially finalized regulations for Digital Token Service Providers (DTSP) under the Financial Services and Markets Act (FSM Act).
According to the document published on May 30, starting from June 30, 2025, all cryptocurrency companies either registered in Singapore or operating from Singapore but serving only overseas clients are required to obtain a DTSP license. There will be no transition period — unregulated entities must fully cease operations by this date.
Lack of License Constitutes a Legal Violation
The document states that companies and individuals falling under Section 137 of the FSM Act but not holding a license will be considered in violation of the law and subject to sanctions under Section 137(6) of the FSM Act. MAS emphasizes that DTSP licenses will be issued only in exceptional cases.
The regulation applies to entities that:
- are registered in Singapore but provide services abroad;
- operate from Singapore and serve foreign clients without any domestic operations.
Four Weeks to Cease Operations
The regulator has opted out of issuing temporary permits and is not offering any grace period. It limited itself to publishing the final rules at least four weeks before they take effect. Companies must use this time to stop providing DT services if they are not licensed.
Individuals providing services from Singapore are also required to obtain a license. An exception is made only for employees of foreign companies who work for such companies from Singapore and do not engage in independent business activities.
Capital Requirements and Security Obligations
Licensed companies must have a minimum capital of $250,000 — both at the time of registration and on an ongoing basis. The rules also introduce requirements for information security, auditing, reporting, appointment of a compliance officer, a minimum number of business days in the office, and other aspects of internal control.
Violation Means Informal Offboarding From the Global Market
Failure to comply with the new requirements means companies will not only be operating illegally in Singapore but also risk losing access to international infrastructure, including banks, payment systems, and auditors.
MAS states that the primary goal of the regulatory tightening is to protect Singapore’s reputation from potential associations with money laundering and terrorist financing through unregulated services.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.