Key Takeaways:
- Singapore’s MAS mandates all local crypto firms to cease overseas DT services by June 30, 2025, or face fines up to $200,000 and possible imprisonment.
- No transitional arrangements will be provided; licenses for continuing operations abroad will be rarely granted due to AML/CFT concerns.
- The move targets regulatory arbitrage, reinforcing MAS’s authority under the FSM Act to regulate overseas activities of Singapore-based crypto entities.
Singapore’s central bank, the Monetary Authority of Singapore (MAS), has set a June 30, 2025 deadline for all locally incorporated crypto service providers to cease overseas digital token (DT) operations or face strict penalties.
The directive falls under Section 137 of the Financial Services and Markets Act (FSM Act) of 2022, which holds that any DT activity conducted abroad by Singapore-based entities still falls under local regulatory oversight.
JUST IN: 🇸🇬 Singapore’s MAS says crypto firms must get a DTSP license or ditch overseas clients by June 30, 2025—no exceptions.
— ChainDesk (@ChainDesk_) June 2, 2025
Non-compliance could result in fines up to 250,000 SGD (approx. $200,000) and up to three years in prison.
MAS stated that no transitional arrangements will be provided.
Only firms already licensed or exempt under existing financial laws — such as the Securities and Futures Act, Financial Advisers Act, or Payment Services Act — may continue operations without breaching the new rules.
Legal experts warn that licenses will be granted only in rare cases due to anti-money laundering (AML) and counter-terrorism financing (CFT) concerns.
Hagen Rooke, Partner at Gibson, Dunn & Crutcher, advised firms to restructure or cut ties with Singapore.
The policy reflects MAS’s effort to close regulatory loopholes and tighten oversight of cross-border crypto activity, ensuring all firms comply with Singapore’s AML/CFT standards — even if their customers are overseas.
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