Singapore’s central bank has set a deadline of 30 June 2025, for local crypto service providers to stop offering digital token (DT) services to overseas markets unless they secure a license.
This directive came from the Monetary Authority of Singapore’s (MAS) response to industry feedback on its proposed regulatory framework for Digital Token Service Providers (DTSPs) under its Financial Services and Markets Act of 2022 (FSM Act).
Following the consultation launched in October 2024, MAS released its final response paper on 30 May 2025, addressing the key feedback received and confirming the new regulatory requirements that will take effect by the end of June 2025.
Overseas Crypto Activities Must Cease by 30 June 2025
A key outcome from the MAS’s final response paper is the requirement for DTSPs to suspend or cease carrying on a business of providing DT services outside Singapore by 30 June 2025.
There will be no transition period or grace window. Firms that fail to comply by the deadline risk severe penalties, including fines of up to SGD 250,000 and potential imprisonment. MAS made it clear in its response that this timeline is non-negotiable.
Even though DTSPs can apply for a license, MAS clarified that licenses will be granted only under “extremely limited circumstances”, citing heightened regulatory concerns around Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) risks due to the internet-based and cross-border nature of digital token services, which could detriment Singapore’s reputation.
Key Requirements for DTSPs Confirmed by MAS
- Maintaining a minimum base capital, paid-up capital, and cash deposit of SGD 250,000.
- A flat annual licensing fee of SGD 10,000.
- Demonstrating competency for senior management, including having a suitably qualified compliance officer at the management level, expected to be based in Singapore.
- Undergoing annual independent audits to verify compliance and operational soundness, particularly concerning AML/CFT protocols.
- Adhering to strict technology risk management and cyber hygiene standards, including a one-hour notification for major incidents.
- Implementing strict AML/CFT measures, such as customer due diligence (CDD) for existing customers, prohibitions on issuing bearer negotiable instruments and large cash payouts (over S$20,000), and adherence to value transfer (travel rule) requirements.
What This Means for Crypto Businesses in Singapore
For businesses, this is a call to action. The 30 June deadline is approaching fast. Companies must now:
- Evaluate promptly if they fall under DTSP licensing scope based on their corporate registration and operational structure.
- Prepare compliance documentation and licensing applications if they intend to continue cross-border services.
- Cease overseas operations immediately if they are unable to meet MAS’s requirements in time.
The cost of inaction is high. Firms that delay compliance or misunderstand their obligations could find themselves locked out of one of Asia’s most important fintech jurisdictions or worse, facing legal consequences.
Staying Compliant and Competitive
Singapore’s crypto future is regulated, transparent, and strictly enforced. Firms that want to operate from here must meet the standards, both in substance and structure.
ChainUp supports digital asset businesses in adapting to evolving regulations with modular, enterprise-grade solutions. Whether you’re restructuring for compliance or scaling licensed operations globally, we’re here to partner on your next move. Our Compliance-as-a-Service experts can guide you through the compliance checklist and licensing process in Singapore.
ChainUp’s commitment to supporting compliance includes:
- Robust AML/CFT Solutions: Offering comprehensive Know Your Transaction (KYT) and Know Your Customer (KYC) capabilities, crucial for real-time transaction monitoring and suspicious activity reporting to meet anti-money laundering and counter-terrorism financing mandates.
- Secure & Auditable Infrastructure: Providing enterprise-grade custody and wallet solutions that prioritize asset security and operational integrity, ensuring adherence to requirements for financial soundness and data protection.
- Automated Regulatory Reporting: Streamlining the generation of accurate and timely compliance reports, essential for annual independent audits and demonstrating ongoing regulatory adherence.
- Expert Regulatory Guidance: Offering strategic advice and hands-on assistance throughout the DTSP application and ongoing compliance journey, ensuring firms navigate the new framework effectively.
Get in touch with our team to align your digital asset business with evolving regulatory requirements.
