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New Crypto Licensing Rules in Singapore Aim to Strengthen Consumer Protection

Singapore's financial regulatory authority has announced stringent new licensing rules for crypto firms operating within its jurisdiction.

The Monetary Authority of Singapore (MAS) has mandated that all crypto entities servicing Singapore customers from abroad must obtain a license by June 30, 2025, or cease operations.

This directive is part of a concerted effort to combat financial crimes such as money laundering and terrorism financing linked to cryptocurrency transactions.

Under the Financial Services and Markets Act, firms will be required to meet strict capital requirements and conduct thorough customer due diligence.

MAS has made it clear that unlicensed firms will face significant penalties, including potential fines of up to 250,000 Singaporean dollars and imprisonment for up to three years for non-compliance.

The regulator has emphasized that there will be no grace period for those failing to secure a license, reflecting a zero-tolerance approach to regulatory breaches.

This move aligns with MAS’s commitment to creating a safer and more transparent crypto ecosystem while promoting innovation.

The licensing process is expected to be complex, which may discourage less prepared entities from applying amidst increasing regulatory scrutiny globally.

As of now, MAS has issued 33 digital payment token licenses to recognized firms, indicating a significant shift towards compliance in Singapore's crypto landscape.

These developments underscore Singapore's intention to bolster consumer protection and mitigate risks associated with digital asset transactions in an evolving market.