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Crypto Compliance: Singapore Sets a Hard Deadline for Unlicensed Firms

Singapore is making significant strides in the regulation of the cryptocurrency sector.

The Monetary Authority of Singapore (MAS) has established a June 30 deadline for all unlicensed digital asset service providers to obtain a license.

Companies operating from Singapore, even if serving only overseas clients, must comply or face shutdown without exceptions.

This regulation stems from the MAS's enforcement of Section 137 of the Financial Services and Markets Act, aimed at closing regulatory loopholes.

The MAS recently issued 33 Major Payment Institution licenses to established firms such as Coinbase, Circle, and OKX, emphasizing its commitment to compliance.

To operate legally, firms must maintain a minimum base capital of SGD 250,000 and perform thorough due diligence on their customers.

Moreover, even freelancers working for foreign crypto entities based in Singapore may need to adhere to these new licensing requirements.

This crackdown mirrors actions from other global regulators, highlighting a growing movement towards tighter oversight in the crypto industry.

With rising concerns over money laundering and terrorism financing, Singapore is asserting its position as a leader in responsible crypto governance.

As the deadline approaches, firms must take immediate action to ensure compliance in this evolving regulatory landscape.