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Crypto Regulations Tighten: Singapore's New Licensing Rules Set for 2025

Singapore's Monetary Authority has mandated that local crypto firms cease overseas token service operations by June 30, 2025.

This decision follows stakeholder feedback on regulations introduced through the Financial Services and Markets Act of 2022.

Firms must obtain a license to continue serving international clients, even if token services are not their primary business.

The new rules come with no transition period, meaning firms operating without a license after the deadline could face significant legal repercussions.

Penalties for non-compliance could reach SGD 250,000 (approximately USD 200,000) and potential imprisonment of up to three years is also possible.

Only those firms already adhering to existing financial regulations will be exempt from these new requirements, narrowing the field significantly.

Legal experts indicate that acquiring new licenses will be a challenging task due to the stringent criteria imposed by the MAS.

This industry shift may force many small to mid-sized companies to reconsider their operational strategies, either by limiting services to local customers or relocating abroad.

The increased compliance burden could drive talent away from Singapore's crypto sector, as skilled workers pursue opportunities in more favorable environments.

In contrast, larger entities with existing licenses are better positioned to navigate these changes and continue their international operations.