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Singapore is cracking down on the unlicensed Digital Token Service Providers (DTSPs) with a warning: by 30 June 2025 DTSPs should get a license of stop providing services to overseas clients.
On 30 May 2025, the Monetary Authority of Singapore published a paper that said, “DTSPs which are subject to a licensing requirement under section 137 of the FSM Act must suspend or cease carrying on a business of providing DT services outside Singapore by 30 June 2025.”
Importantly, the MAS has granted the DTSPs no transition period. Hence, there is no grace period for the companies that miss the deadline.
SINGAPORE ORDERS CRYPTO FIRMS TO HALT OVERSEAS SERVICES: DETAILS…
– Singapore’s central bank, the Monetary Authority of Singapore (MAS), has set a hard deadline.
– All local crypto firms without a Digital Token Service Provider (DTSP) license must stop offering services to… pic.twitter.com/HMcIFQ2U8f
— BSCN (@BSCNews) June 2, 2025
Singapore first signalled its intention to strengthen the regulatory framework in October 2024, when it opened public consultations on the licensing requirements for crypto service providers.
By November 2024, the consultations concluded, and the agency moved swiftly to implement new rules. The updated framework now requires all firms offering DPT services- especially those targeting overseas customers – to obtain the necessary licenses or face sever penalties for non-compliance.
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Crypto Industry in Singapore Reacts
The MAS has also warned that only a select number of applicants will be approved, reflecting heightened concerns about financial crime and money laundering.
The crypto industry had reacted strongly to the new rules, with several firms raising concerns about the tight four-week deadline for compliance. The companies argue that there might be insufficient time for companies to adjust theur operations and submit the required documentation.
Some industry players proposed alternatives, such as a grace period, temporary exemptions for applicants under review, or a fast-track process for simpler business models.
Singapore flexing those regulatory muscles again. But let's be real – this just pushes innovation elsewhere. Nature of crypto: if you build walls, we build bridges. Or tunnels. Sometimes trebuchets.
— KOLIN (@kolin_ai) June 2, 2025
“The stakes are high. Violators face fines up to SGD 250,000 (around $200,000) and up to three years in jail,” noted Netizens.
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