From Utopia to "Place of Deportation": Singapore's Changes in the Eyes of 5 Web3 Practitioners

From Ideal Country to "Driving Out": 5 Web3 Practitioners' Perspectives on Singapore's New Landscape June 30, 2025, is a red line on the calendar for every Web3 practitioner in Singapore. From this date, according to Section 137 of Singapore's Financial Services and Markets Act (FSMA): All individuals or companies providing digital token-related services, as long as they have an office in Singapore, regardless of whether their service targets are in Singapore, must obtain a Digital Token Service Provider (DTSP) license, otherwise facing criminal liability. The Monetary Authority of Singapore (MAS) clearly stated in the regulatory response document released on May 30 that those without a license by then must immediately cease overseas business; applications in progress will not be considered as legal grounds for existence. This wording has been interpreted by many as "the strictest crypto regulation in history". 1. Token Operational Project Founder Chari: Small Enterprises Have Their Own Way of Survival, Water Will Always Find Its Path We have indeed been affected. In the current crypto space, almost all meaningful products ultimately cannot avoid trading at the core. Once trading is involved, it will inevitably touch the DTSP regulatory red line. Regulation should serve companies with mature business models and clear structures, but for our small team, investing significant time and resources to deal with regulation is almost - an unbearable burden.

It is obvious that Singapore is no longer suitable for the development of early-stage projects. Singapore may have never thought about becoming an incubator for startups; they only hope to become headquarters for mature enterprises. We are not even sure what our business model will look like next month, and we do not rule out the possibility of completely leaving Singapore in the future. However, I will face changes with an optimistic attitude, after all, "small businesses will always have their own way of survival".

2. A geek veteran (pseudonym) who has been deeply involved in OTC trading for many years: Singapore is a "pragmatic playboy" who keeps those with value

I have felt that the Web3 industry has always been somewhat marginalized, whether previously driven out of China or currently on the edge of small businesses in Singapore. However, objectively speaking, as a practitioner in OTC business in Singapore for many years, I have always felt that pragmatism is the underlying tone of Singapore's regulation. To put it bluntly, the Singapore government is like a "pragmatic playboy": whoever can bring substantial value will be kept; whoever brings only bubbles will be appropriately shown the door. Those with licenses can continue, while others will be cleared out - this is a very clear signal.

However, from my perspective, this regulation is not as harsh as it seems, more like "thunder but little rain", mainly to warn and deter. Companies that truly need licenses have already applied, and those bosses who contribute to the government or have real capabilities will not be anxious about this new regulation.

As for why regulation suddenly tightened, I believe it is related to the gray areas and shell companies existing in the crypto in Southeast Asia. MAS's current goal is actually to use these regulations to sound an alarm for some less regulated KOLs and scattered groups. They may not be able to completely cut these people off, but hope to force them to restrain themselves through legal frameworks.

To my knowledge, some KOLs and exchange practitioners have recently chosen to suspend business, go traveling, or maintain a wait-and-see attitude, all waiting for a more clear signal.

3. John, a practitioner who has been deeply involved in Web3 AI in Singapore: Looking beyond the phenomenon to the essence, where there is a cause, there must be an effect

I want to emphasize a word: pragmatism. This is my core understanding of Singapore's governance style. Singapore's efficiency and adherence to rules are essentially to ensure economic benefits and secure a stable position in international political and financial games. This increasingly strict regulatory clause is actually because some issues have emerged in the Web3 field that must be addressed, and the government must intervene to ensure healthy ecosystem development.

My project has not been directly affected, but I can see that for some unlicensed exchanges and their partner projects and ecosystem partners, this policy adjustment has indeed brought significant impact. Especially for KOLs who play financial advisory roles in the Web3 circle, the policy pressure has been transmitted to them and has had a certain deterrent effect.

Recently, I have also noticed that more and more freelancers and remote workers are beginning to prefer working from home and avoid actively discussing Web3-related topics in public, everyone trying to reduce risks and minimize unnecessary trouble.

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