The Financial Authority of Singapore (MAS) has make clear its Digital Token Service Suppliers (DTSPs) regime, following widespread panic within the trade over a possible ban on crypto corporations serving abroad purchasers
In a June 6 announcement, MAS reiterated that beginning June 30, crypto corporations “offering companies solely to prospects outdoors of Singapore referring to digital cost tokens and tokens of capital market merchandise will should be licensed.”
Nevertheless, the regulator warned that such licenses might be granted solely in “extraordinarily restricted circumstances.”
“MAS has set the bar excessive for licensing and can typically not difficulty a licence,“ the company mentioned, citing the problem of supervising offshore corporations and cash laundering dangers as key considerations.
MAS is unable to successfully supervise such individuals,” the regulator added. Consequently, companies unable to acquire licenses will “should stop their regulated actions.”
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The beginning of a crypto exodus?
The crypto market took discover when the MAS set a deadline of June 30 for native crypto service suppliers to cease providing digital token companies to abroad markets earlier this month.
The brand new guidelines have already triggered a shift. India-serving however Singapore-based crypto trade WazirX introduced that it’s moving its operations to Panama shortly after the MAS introduced the deadline.
On the time of the deadline announcement, Hagen Rooke, a Companion at Gibson, Dunn & Crutcher, mentioned that licenses can be issued solely in uncommon instances. In a LinkedIn publish, he stated:
“The MAS will grant licences below the brand new framework solely in extraordinarily restricted circumstances (as such a working mannequin typically provides rise to regulatory considerations, e.g. AML/CFT-related).”
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Singapore tightens crypto controls
Current strikes by Singapore regulators recommend that native authorities intend to keep up stricter management over the native crypto trade. Right now’s announcement clarifies that crypto firms serving native prospects in Singapore “are already topic to regulation,” so the foundations are solely expanded to these serving prospects overseas. Nevertheless, MAS clarified that not all crypto-related companies are affected:
“Suppliers of companies in relation to different tokens, reminiscent of these solely used as utility and governance tokens, will not be topic to licensing or regulation below the brand new regime, and therefore will not be impacted.“
Singapore’s regulatory shift follows Could reviews that digital belongings are fairly in style within the nation. Crypto consciousness in Singapore has reached an all-time excessive, with 94% of respondents in a recent survey indicating familiarity with no less than one digital asset.
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