New Strict Regulations from the Monetary Authority of Singapore for Cryptocurrency Companies
The Monetary Authority of Singapore (MAS) has just announced strict regulations for cryptocurrency companies providing overseas services. According to the latest guidelines, digital Token service providers (DTSP) must cease all international activities by June 30, 2025, unless legally licensed. Violations could result in fines up to $200,000 and a maximum prison sentence of 3 years.
Strict Compliance or Face Severe Penalties
Under the Financial Services and Markets Act (FSM Act 2022), any entity based in Singapore — including individuals, businesses, or partnerships — providing digital Token (DT) services to foreign users must:
- Obtain a Digital Token Service Provider (DTSP) license, or
- Immediately stop all international operations.
Non-compliance will result in severe penalties:
Fines up to 250,000 Singapore dollars (approximately $200,000)
Maximum prison sentence of 3 years.
Key Points to Note in MAS's New Regulations
- No Extension Period:
Current providers will not be given a transition timeline or extension. The deadline is June 30, 2025. - License Exemption:
Entities already licensed under the Securities and Futures Contract Act, Financial Advisers Act, or Payment Services Act are exempt from new licensing requirements. - Strict AML/CFT Standards:
Only companies with robust anti-money laundering (AML) and counter-terrorism financing (CFT) systems are eligible for DTSP licenses.
Why Tighten Control?
MAS's goal is to eliminate "regulatory arbitrage", where cryptocurrency companies exploit Singapore's name as a base while operating internationally without full supervision.
This is also part of a broader strategy to strengthen financial integrity, protect Singapore's international brand reputation, and prevent illegal profiteering under the guise of being crypto-friendly.
No Legal Loopholes
Section 137 of the FSM Act stipulates that any business registered in Singapore is considered to be operating fully within Singapore's territory, regardless of foreign customers.
This means companies cannot evade foreign laws by relying on their Singapore location. MAS's directives have closed all "backdoors", bringing comprehensive transparency to management.
With a policy of no extensions, no gradual transitions, and strict sanctions, Singapore sends a powerful message: cryptocurrency regulations must be taken seriously — both domestically and internationally.
