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.
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. The Financial Services and Markets (FSM) Act 2022 now requires crypto firms to obtain licenses or cease operations by June 30, 2025. MAS has warned that the crypto industry’s cross-border, internet-based nature significantly increases risks of money laundering and terrorism financing. It will grant licenses only in “extremely limited circumstances” to companies that meet global standards and protect Singapore’s reputation.
Singapore Sets Firm June 2025 Deadline for Crypto Compliance, No Grace Period Offered
Although industry stakeholders requested a grace period or transitional provisions, the Monetary Authority of Singapore (MAS) firmly rejected those appeals. In its formal response, MAS clarified that Digital Token Service Providers (DTSPs) who require licensing under section 137 of the FSM Act must suspend or stop offering digital token services outside Singapore by June 30, 2025. The statement also made it clear that MAS will not allow any transitional arrangements.
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:
Crypto sector stakeholders, including blockchain groups and legal professionals, urged the Monetary Authority of Singapore (MAS) to introduce tiered fees or provide 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.
