Singapore Cracks Down on Crypto Firms’ Overseas Operations by June 30 Deadline

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has issued a stern directive requiring all local cryptocurrency firms to cease providing digital token (DT) services to overseas markets by June 30, 2025, unless they secure a Digital Token Service Provider (DTSP) license.

This move, part of the Financial Services and Markets Act of 2022 (FSM Act), aims to tighten regulatory oversight and address risks associated with cross-border crypto activities.

Non-compliant firms face severe penalties, including fines up to 250,000 Singapore dollars ($200,000) and potential imprisonment of up to three years. The directive reflects Singapore’s commitment to combating money laundering and terrorist financing while maintaining its reputation as a global financial hub.

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Strict Licensing Requirements and Penalties

The MAS has mandated that Singapore-incorporated companies, individuals, or partnerships providing DT services abroad must either obtain a DTSP license or halt operations by the June 30 deadline.

Under Section 137 of the FSM Act, any crypto-related business operating from Singapore is presumed to be subject to local licensing requirements, regardless of whether overseas activities are their primary focus.

The regulator has rejected industry calls for a transitional period, emphasizing the urgency of compliance due to heightened concerns over anti-money laundering (AML) and counter-terrorist financing (CFT) risks.

Recent data indicates that only 19 crypto service providers, including major players like Crypto.com and Coinhako, were authorized by MAS as of January 2024, highlighting the stringent licensing process.

Firms failing to comply risk significant financial penalties and legal consequences, signaling a zero-tolerance approach to unregulated cross-border operations.

Did You Know?
Singapore, a global crypto hub, saw 26% of its population holding cryptocurrencies in 2024, underscoring the nation’s significant role in the digital asset market.

Industry Challenges and Regulatory Context

The MAS’s decision follows a consultation process initiated in October 2024, where crypto firms expressed concerns over the tight four-week compliance timeline and proposed grace periods or tiered fee structures.

The regulator dismissed these suggestions, citing the high risk of financial misconduct in the crypto sector. Legal experts note that DTSP licenses will be granted only in rare cases due to regulatory concerns about cross-border operations.

Singapore’s crypto market remains vibrant, with over 90% of the population aware of the industry; however, the adoption of cryptocurrencies has slightly declined recently.

The FSM Act, passed in April 2022, empowers MAS to regulate Singapore-based crypto firms operating abroad, ensuring compliance with AML and CFT standards.

This crackdown aims to close regulatory gaps that could allow firms to exploit Singapore’s financial hub status while conducting unregulated activities overseas.