Singapore Directs Crypto Firms to Halt Overseas Operations in Crackdown on Unlicensed Providers 11o49 Technology News

Singapore's MAS has set a tight four-week deadline for crypto firms to comply with its directive. 5w291g

Written by David Delima | Updated: 4 June 2025 10:21 IST

Singapore Directs Crypto Firms to Halt Overseas Operations in Crackdown on Unlicensed Providers

Photo Credit: Unsplash 4h2y4v

Crypto holding and trading is legal in Singapore

Highlights

Singapore is cracking down on unlicensed crypto firms
The MAS proposed a consultation paper on crypto laws in 2024
The proposed regulations have been positively received

ment

Singapore's financial authority has responded to received from the crypto industry on its proposed crypto regulations. On May 30, the Monetary Authority of Singapore (MAS) outlined certain requirements to be fulfilled by Digital Token Service Providers (DTSPs) in Singapore. Crypto firms have been directed to halt overseas operations by the end of the month, as part of efforts to establish more control over crypto-related services. The regulator has also decided to limit the licenses issued to DTSPs.

Singapore's Crackdown on Unlicensed DTSPs 4o5i1w

In its statement, the MAS reiterated its concerns around the possible exploitation of DTSPs by malicious actors for illegal money laundering. Local crypto firms have been directed to pause overseas operations by June 30. The MAS has refused to provide transitional arrangements for local DTSPs offering services abroad.

Local firms will need to to secure necessary licences in Singapore, before considering international expansion.

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The first and second schedules to the Singapore Financial Services and Markets Act 2022 (FSM Act) are slated to come into force on June 30. DTSPs that violate the rules will be liable to pay severe penalties.

All the licensed crypto firms in Singapore will have to pay an annual fee of $10,000 (roughly Rs. 8.56 lakh) to retain their licences. Each of the ed firm must agree to regular audits of their operations, the fresh statement from the MAS noted.

Licensed crypto entities in Singapore must now deploy tech management solutions to combat the risks of breaches and hacking.

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Several proposed laws from the regulator have garnered general from the public, the statement by the MAS indicated.

While crypto holding and trading is legal in Singapore, no cryptocurrency is recognised as legal tender.

Earlier this year, Sony Electronics said that its Singapore-based customers can now pay for products using the USDC stablecoin.

Indian crypto advocacy group Bharat Web3 Association (BWA) and the Blockchain Association Singapore (BAS) signed an MoU in 2023 to collaborate on Web3 related developments.

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Further reading: Crypto Rules

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at [email protected]. More