In a bold move to tighten oversight of the crypto industry, Singapore’s central bank—the Monetary Authority of Singapore (MAS)—has announced a strict new rule: after June 30, 2025, all crypto businesses operating from Singapore must hold a Digital Token Service Provider (DTSP) license or stop offering services, including those targeting overseas markets.
No More Grace Periods – Comply or Cease Operations
MAS made it clear that this isn’t just a warning. Crypto firms that fail to comply will face hefty penalties, including fines of up to SGD 250,000 (approx. USD 200,000) and up to 3 years in prison. Unlike previous regulatory rollouts, no grace period will be given. According to MAS, crypto firms have had plenty of time to prepare.
The new rule applies not only to companies but also to individuals involved in crypto services, especially if their businesses are based in Singapore. However, companies already licensed under financial laws like the Securities and Futures Act, the Financial Advisers Act, or the Payment Services Act are exempt from the new licensing requirement.
Aiming for Safer, More Transparent Crypto Services
MAS says the decision strikes a balance between supporting blockchain innovation and protecting users from financial risks like fraud, money laundering, and terrorism financing. The regulator plans to increase monitoring efforts and crack down on any attempts to bypass these regulations.
As of now, 33 licenses have already been issued, including approvals for major platforms such as Coinbase and Anchorage. This shows that compliant crypto businesses can still thrive under clear, responsible regulation.
Why It Matters
Singapore has long been seen as a global fintech hub, and this move reinforces its commitment to fostering a secure and well-regulated crypto ecosystem. For crypto firms, the message is clear: operate within the rules—or risk losing access to one of Asia’s most respected financial markets.
