Singapore Sets June 30 Deadline for Crypto Firms to Cease Overseas Operations
MAS tightens crypto oversight Reuters
Singapore Tightens Crypto Regulations with Overseas Service Ban
Singapore’s Monetary Authority (MAS) has issued a strict deadline requiring local cryptocurrency service providers to halt all overseas digital token operations by June 30, 2025. This regulatory move represents a significant tightening of Singapore’s crypto oversight framework.
New Digital Token Service Provider Rules Take Effect
The directive stems from MAS’s response to industry feedback regarding proposed regulations for Digital Token Service Providers (DSTPs) under the Financial Services and Markets Act 2022. Local crypto companies face a clear ultimatum: cease overseas operations or obtain proper licensing before the June deadline.
Singapore crypto compliance framework ComplyCube
“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,” MAS stated in its official response.
Hefty Penalties for Non-Compliance
Companies violating these new regulations face substantial consequences, including fines up to SGD 250,000 ($200,000) and potential imprisonment of three years. Under Section 137 of the FSM Act, Singapore-based businesses are presumed to operate from Singapore and require proper licensing, regardless of their primary business activities.
Growing crypto compliance landscape Cointelegraph
Limited Licensing Opportunities
Legal experts suggest that obtaining licenses under the new framework will be extremely rare. Hagen Rooke, Partner at Gibson, Dunn & Crutcher, noted that MAS will grant licenses only in limited circumstances due to heightened Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regulatory concerns.
Only firms already licensed under existing financial laws – including the Securities and Futures Act, Financial Advisers Act, or Payment Services Act – may continue operations without conflicting with new regulations.
Addressing Cross-Border Regulatory Risks
This regulatory tightening addresses MAS’s concerns about crypto firms potentially exploiting regulatory gaps by registering in Singapore while conducting unregulated activities abroad. The FSM Act, passed in April 2022, grants MAS greater authority over Singapore-based crypto companies operating internationally.
MAS headquarters in Singapore Monetary Authority of Singapore
The new framework requires DTSPs with overseas operations to comply with strict AML and CFT standards, even when not offering services within Singapore. This comprehensive approach aims to close regulatory loopholes and enhance Singapore’s position as a responsible financial hub.
Companies affected by these regulations are advised to consider swift operational restructuring to remove Singapore touchpoints and ensure compliance with the evolving regulatory landscape.
