Singapore to ban unlicensed crypto firms after June 30
MAS enforces licensing for crypto providers
The Monetary Authority of Singapore (MAS) has announced that by the end of this month, any entity operating in Singapore and offering digital token services abroad must obtain a Digital Token Service Provider (DTSP) license or cease operations after June 30.
MAS emphasizes that no grace period will be granted to local crypto service providers, as they have had sufficient time to comply. Officials confirmed that MAS will enhance oversight and investigate any suspicious attempts to circumvent regulations.
“This approach strikes a balance between fostering innovation and protecting consumers. It aims to support the development of a safe and transparent crypto ecosystem,” the central bank stated.
The licensing requirement also applies to individuals involved in cryptocurrency activities, depending on their role and whether their business is based in Singapore.
The only exemption is for firms already licensed under existing laws—such as the Securities and Futures Act, the Financial Advisers Act, or the Payment Services Act—who are not subject to this new obligation.
Balancing risk and innovation
According to Section 137 of the FSM Act, all operational entities based in Singapore must obtain a license to continue legal operations. Non-compliance may result in a fine of up to SGD 250,000 (approximately USD 200,000) and imprisonment of up to three years.
To date, MAS has issued 33 digital payment token licenses, including to Coinbase and Anchorage. The regulator believes its approach will mitigate risks related to money laundering and terrorist financing.
As we wrote, Crypto ownership in Singapore grows rapidly
