Market News

Crypto Compliance in Singapore: A New Era for Regulatory Standards

Singapore’s Monetary Authority has issued fresh guidelines tightening its grip on offshore-only crypto operations.

Starting June 30, 2025, digital token service providers (DTSPs) serving only international clients will require a license, limiting unregulated access to the digital asset market.

This directive aligns Singapore with global efforts against money laundering and terrorist financing, signaling the end of regulatory loopholes in the city-state.

Despite perceptions of a policy shift, MAS maintains that compliance has been a longstanding expectation since consultations began in February 2022.

The regulation clarifies that only providers of sanctioned digital payment tokens and capital market products need licensing, exempting utility and governance tokens from oversight.

With rising global scrutiny, crypto firms are reconsidering their operational bases, as jurisdictions like Hong Kong also impose stringent licensing requirements.

Recent reports indicate that migration towards more compliant regions is on the rise, with companies exploring options in Hong Kong and Malaysia after being expelled from less regulated environments.

As the landscape shifts, regulatory frameworks are expected to converge across major markets, driven by compliance mandates set by the Financial Action Task Force.

The changing dynamics underscore the need for cryptocurrencies to operate transparently and responsibly within established legal boundaries.

As Singapore embarks on this regulatory tightening, the crypto industry must adapt to new norms or face exclusion from one of Asia's key financial hubs.