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Home»Legal»Singapore’s New Rules Threaten Crypto Founders With Jail and $200K Fines
Legal

Singapore’s New Rules Threaten Crypto Founders With Jail and $200K Fines

NBTCBy NBTC27/06/2025No Comments3 Mins Read
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Singapore has issued a hard deadline for crypto companies operating from its jurisdiction to stop serving overseas clients unless they secure a license under new rules taking effect at the end of June.

The Monetary Authority of Singapore (MAS) has made clear that no grace period, transition plan, or extension will be offered, firms must comply or shut down.

MAS Enforces New Licensing Regime With Immediate Effect

From June 30, any company, partnership, or sole proprietor incorporated in Singapore that offers digital token services to clients outside the country must hold a Digital Token Service Provider (DTSP) license under the Financial Services and Markets Act 2022. The directive applies broadly and without exception.

The MAS said the restrictions apply regardless of business size or the extent of overseas exposure. Even if foreign operations make up a minor share of a company’s activity, the same rules apply. The agency is closing what it sees as a critical loophole that previously allowed firms to target international markets while avoiding local oversight.

“Entities must either obtain a DTSP licence or cease overseas activity,” MAS stated. “There will be no transitional arrangements.”

The rules apply based on where a company is incorporated, not where its clients or infrastructure are located. MAS has also made clear that the business model, scale, or revenue size does not affect the compliance requirement.

Unlicensed firms that continue overseas digital token operations after June 30 will face criminal charges. Violations of Section 137 carry a fine of up to SGD 250,000 (approximately USD 200,000) and/or up to three years in prison.

MAS has indicated it will not hesitate to take enforcement action and has rejected industry calls for more flexible implementation.

Licence Approvals to Remain Rare Amid AML Concerns

While MAS has not formally suspended DTSP licence applications, it has confirmed that approvals will be issued only under “extremely limited circumstances.” This move effectively constitutes a de facto moratorium on new licences for global-facing crypto firms.

In the lead-up to the deadline, some crypto firms have begun relocating operations and staff to jurisdictions with looser regulatory frameworks. MAS, however, has said providers should have anticipated the changes and prepared in advance.

The agency clarified that companies currently licensed to serve Singapore-based clients will not be affected by the new measures and may continue servicing both domestic and international customers. Token services tied to utility or governance tokens also remain outside the scope of the new licensing regime.

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