Singapore is requiring that crypto service providers with local operations but overseas clientele be licensed or cease activities by June, enforcing this rule without a transitional period or gradual implementation.
Singapore Sets Firm June 2025 Deadline for Crypto Compliance, No Grace Period Offered
On May 30, the Monetary Authority of Singapore (MAS) concluded its stance on the regulation of digital token service providers (DTSPs) operating from Singapore while catering to international clients. According to the Financial Services and Markets (FSM) Act 2022, these crypto firms are now required to obtain licenses or shut down operations by June 30, 2025. MAS highlighted the elevated risks of money laundering and terrorism financing due to the crypto industry’s cross-border, internet-driven nature. It emphasized that licenses will be granted only under “extremely limited circumstances” to companies that align with global standards and pose no reputational threat to Singapore.
Although industry stakeholders had requested a grace period or transitional provisions, those appeals were firmly rejected by the Monetary Authority of Singapore (MAS). In its formal response, the authority clarified: “DTSPs subject to a licensing requirement under section 137 of the FSM Act must suspend or cease the business of offering digital token services outside Singapore by June 30, 2025.” The statement further emphasized that no transitional arrangements would be permitted.
MAS maintains our position that no transitional period will be provided. Instead, MAS will provide the four-week commencement notification period for DTSPs to suspend or cease the provision of all DT services by 30 June 2025.
It added:
Calls were made by crypto sector stakeholders, such as blockchain groups and legal professionals, for the Monetary Authority of Singapore (MAS) to introduce tiered fees or offer exemptions for startups. However, the agency upheld its decision to enforce a flat annual fee of S$10,000 ($7,744.20) and a minimum capital threshold of S$250,000 for all holders of crypto licenses.
The finalized regulatory structure enforces stringent compliance standards for the crypto sector, spanning anti-money laundering (AML), countering the financing of terrorism (CFT), cybersecurity practices, audit procedures, and know-your-customer (KYC) protocols. MAS emphasized that any Singapore-based individuals collaborating with overseas crypto firms must obtain licensing unless formally exempted. Additional measures—such as restrictions on bearer negotiable instruments, prohibitions on large cash disbursements, and mandatory technology risk safeguards—aim to strengthen oversight. While MAS maintains that these regulations are essential for safeguarding the financial ecosystem, several voices within the crypto space argue that such strict measures may push blockchain talent and capital toward more flexible markets. Advocates of digital assets are urging for a regulatory equilibrium that ensures financial security without stifling crypto innovation.
