• By June 30, 2025, all Singapore-based entities offering digital token services to overseas clients must obtain a DTSP license or cease operations.
  • Violating the directive can lead to fines of up to SGD 200,000 and imprisonment for up to three years.

The Monetary Authority of Singapore (MAS) has issued a sweeping directive under the expanded Payment Services Act, requiring all digital token service providers (DTSPs) serving overseas clients to obtain a license by June 30, 2025, or shut down operations entirely.

This includes Singapore-incorporated companies, partnerships, and individuals engaged in custodial, wallet, or other crypto services aimed at foreign markets.

MAS emphasised the urgency: there will be no grace period, no transitional arrangements, and no extensions.

Failure to comply constitutes a criminal offence, punishable by fines of up to SGD 200,000 and three years’ imprisonment.

FSMA 2022: A Global Standard in Enforcement

These changes build on the Financial Services and Markets Act (FSMA) 2022, Singapore’s flagship legislation designed to bolster oversight across financial sectors.

Under FSMA, MAS was granted expanded authority, including extraterritorial supervision of crypto firms serving Singaporean clients, even if they operate from abroad.

FSMA provisions include:

  • Mandatory segregation of customer assets
  • Strict anti-money laundering (AML) and counter-terrorism financing (CFT) requirements
  • Heavy fines for unlicensed operations and misleading disclosures
  • Enforcement powers, including search, seizure, and license revocation
“Segregation of customer assets is a critical step in protecting investors. This is part of a broader shift globally, where regulators are closing gaps exposed by events like the FTX collapse,”

says Anton Golub, a digital asset regulatory advisor.

Singapore joins a growing list of jurisdictions tightening their grip on virtual asset service providers.

The EU’s MiCA regulation, Hong Kong’s VASP regime, and the UAE’s VARA framework all reflect this international realignment, focused on risk management, investor protection, and regulatory parity.

Edited by Annette George