On May 30, 2025, the Monetary Authority of Singapore (MAS) released its final policy framework.
The policy mandates that all digital token service providers (DTSPs) operating in or from Singapore must obtain a DTSP license or cease operations by June 30, 2025.
The policy applies especially to firms offering cryptocurrency services to overseas customers. Notably, MAS has made it clear that there will be no grace period for compliance.
Any firm found operating without a license after the deadline will be subject to legal penalties under Section 137(6) of the Financial Services and Markets (FSM) Act.
The move is part of a broader strategy to establish a strong, regulated environment that minimizes risks associated with cross-border and internet-based digital token services.
No Transitional Period and Strict Licensing Criteria
MAS emphasized that the licensing regime will be approached with “prudence and caution,” citing heightened risks of money laundering and terrorism financing (ML/TF) associated with unregulated crypto operations.
As such, licenses under the DTSP framework will only be issued in “extremely limited circumstances.”
Unlike other regulatory transitions, MAS will not provide a transitional period for existing service providers.
Instead, the authority will only offer a four-week commencement notification window, making it imperative for firms to either fully comply or shut down operations by the stipulated deadline.
This firm stance underscores MAS’s intent to protect Singapore’s financial ecosystem from reputational damage and illicit activity.
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Scope of Regulation and Licensing Costs
The new regulations apply to all entities providing digital token services either from a business presence in Singapore or as Singapore-incorporated firms serving international markets.
Determining factors include the location of customers and whether sales and business development functions are geared toward overseas users.
MAS has also detailed the licensing structure: all applicants granted a DTSP license will be subject to a fixed annual fee of SGD $10,000, regardless of business size or scope.
The licensing framework mirrors that of Digital Payment Token Service Providers (DPTSPs), maintaining consistency across Singapore’s digital asset regulatory architecture.
Furthermore, the regime incorporates mandatory technology risk management and cyber hygiene measures, given the vulnerabilities of distributed ledger technologies.
Industry Response and Compliance Landscape
MAS’s consultation process involved major industry players, including the Blockchain Association of Singapore, Circle Internet Singapore, and Hedera Hashgraph, among others.
Several entities requested confidentiality in their submissions, signaling the sensitive nature of the regulatory changes.
While the industry has expressed varied concerns, MAS has remained resolute in its final stance, there will be no compromise on deadlines or regulatory scope.
The directive marks a significant tightening of crypto oversight in Singapore, aiming to balance innovation with financial security.
Crypto firms now face a critical juncture: adapt quickly to regulatory requirements or exit the market altogether by June 30, 2025.