Singapore, 6 June 2025 – The Monetary Authority of Singapore (MAS) cleared the air on its new rules for Digital Token Service Providers (DTSPs). Confusion had spread in the crypto industry after concerns rose about a possible ban on serving overseas clients.
MAS replied firmly and directly. The new rules will take effect on 30 June 2025. DTSPs that target only overseas clients will now require a license.
MAS said that such licenses would rarely be issued. These companies have high money laundering risks. Their core activities should not be conducted in Singapore; thus, MAS cannot supervise them effectively. They must cease operations without a license.
Firms that have already been providing services to Singapore customers will not face any change. Such firms are already regulated by the existing legal framework. These firms can continue offering services to foreign clients. The businesses where such firms operate will continue as they did before under their existing licenses.
MAS Reaffirms longstanding crypto position
Companies dealing solely in utility or governance tokens have nothing to worry about. MAS clarified that the new rules do not cover those types of tokens. They remain outside the DTSP regime and unregulated for now.
MAS also pointed out the long lead-up to this decision. The authority has spoken clearly about this issue since 2022. It reminded firms that its position appeared in earlier announcements, including those from 2024 and May 2025. The message stayed consistent.
Companies affected by the change had been notified in advance. MAS had reached out to those it suspected would be falling under the new regulations. It provided them with guidance and ample time to transition smoothly out of the regulatory framework. Seemingly, very few companies are affected.
MAS sets June deadline for crypto Firms
The transition is now into the final stage. DTSPs that serve only foreign clients have to cease operations by 30 June 2025 unless licensed, MAS said. It invited those affected to seek assistance from the regulator. Companies could email the authority at its official email address.
MAS reaffirmed its commitment to protecting Singapore’s financial system. It would expect to see strong controls against any form of illicit finance. Such controls would help manage risk while permitting legitimate, regulated entities to operate freely.
The clarification puts an end to the speculation and establishes a firm expectation. Cryptocurrency companies have the information now. Singapore is still open to digital assets but with clear rules and tough oversight.
