INSUBCONTINENT EXCLUSIVE:
Singapore crypto regulations and the June 30 deadline The Monetary Authority of Singapore (MAS) has delivered a
clear mandate that all Singapore-based entities offering digital token services to overseas clients must obtain a DTSP licence or halt
under the Financial Services and Markets (FSM) Act 2022, orImmediately cease operations involving foreign markets.This directive leaves no
scope of these new rules must comply or shut down cross-border digital asset activity.Importantly, these restrictions apply regardless of
the scale of overseas business activity
Even firms for whom foreign clients represent only a small fraction of revenue are affected
MAS is closing off a key regulatory gap that allowed Singapore-based crypto companies to serve global users while avoiding stricter rules in
other jurisdictions.Did you know? MAS mandates a minimum base capital of SGD?250,000 for DTSP applications (even for partnerships or
individuals), which users must maintain as a cash deposit or capital contribution
DTSPs to include any entity offering token-related services abroad, regardless of size, structure or direct user involvement.According to
Section 137 of the FSM Act, a Digital Token Service Provider (DTSP) includes any person or business engaged in:The transfer of digital
payment tokens.The exchange between digital tokens and fiat or other tokens.The custody of tokens on behalf of others.The promotion of any
token-related service.MAS has intentionally drawn the definition wide
It encompasses centralized crypto exchanges, DeFi platforms, wallet providers, token issuers and even non-crypto firms if they offer
token-related services to clients outside Singapore.This means that a Singapore-based startup running a marketing campaign for a foreign
incorporation, not where servers are located or where the end-user resides.MAS has emphasized that the business model or revenue size does
it will take enforcement action against any DTSP that has not registered or exited overseas operations by the June deadline.Did you know?
Pure utility or governance token providers are exempted from DTSP licensing, unlike exchanges or custodial businesses involved with payment
MAS crypto deadline 2025 Despite industry lobbying, the MAS has refused all requests for phased
implementation.Crypto service providers and industry groups had urged the regulator to allow for a transition window, a temporary exemption
insufficient time to restructure or unwind services.MAS dismissed these concerns, stating that allowing token services to continue during a
transition would expose the market to unacceptable risks, particularly related to financial crime.As a result, the regulatory update amounts
Singapore $200K crypto fine and prison risks Violating the June 30 deadline is a criminal offense under Singapore
law.Firms that continue operating as DTSPs for overseas clients without a valid licence will be in breach of Section 137 of the FSM Act and
face:Fines of up to SGD 250,000 (approximately USD 200,000), andImprisonment for up to three years.MAS has stressed that these penalties
issue to a legal survival question
Also, because MAS is expected to grant licences only sparingly, citing ongoing AML/CFT concerns, many firms may not qualify
Singapore imposes de facto ban on new crypto licences amid AML concerns While MAS has not officially suspended
licensing is now intentionally high
and the related crypto legal risks in 2025.This effectively imposes a de facto licensing ban
Unless a crypto company in Singapore has both elite compliance infrastructure and a strong operational justification, it is unlikely to
receive regulatory approval
The crypto licensing challenges now facing firms in the city-state are among the most stringent in the world
financial ecosystem, while serving overseas clients under weaker or no regulatory oversight.This loophole allowed firms to market themselves
Financial Services and Markets Act 2022 gave MAS direct oversight of cross-border digital token activity, via Section 137
This legal mechanism empowers the authority to impose full compliance requirements, regardless of where users, servers, or funds are
but primarily serving users in India
After a Singapore court blocked its restructuring, the company relocated operations to Panama
Its parent firm was restructured under Zensui, a new entity based outside Singapore.A growing number of crypto firms are restructuring or
relocating to offshore jurisdictions such as Panama, Hong Kong and Dubai, all seen as more permissive environments for digital asset
like credit card-based crypto spending for tourists, while the Philippines is moving to enhance crypto licensing and AML oversight.
