Singapore’s Regulator to Restrict Overseas Operations of Crypto Firms

The Monetary Authority of Singapore (MAS) has mandated that crypto companies obtain a Digital Token Services Provider (DTSP) license. Failing this, they must cease servicing overseas clients by June 30.

The regulator has taken a firm stance: there will be no transition period, and violators will face sanctions.

The new rules will affect companies based or registered in Singapore that provide digital token services outside the country without a DTSP license. This is required under the Financial Services and Markets Act 2022 (FSM Act).

The regulator warned that licenses will be granted only “in extremely limited circumstances.” Companies must comply with international standards from organizations such as the Financial Action Task Force.

Minimum financial requirements have been set: $250,000 for companies and individual operators. Company leadership must also meet conditions regarding experience and knowledge of local legislation. Licensed platforms are required to undergo an annual independent audit of transactions and submit reports to MAS.

MAS explained its decision by citing increased risks of money laundering and terrorism financing. According to the authority, the cross-border nature of crypto services makes them more vulnerable.

Back in September 2024, Singapore initiated an investigation into seven individuals suspected of selling Worldcoin accounts and providing token trading services.