Singapore Clarifies Licensing for Digital Token Service Providers

According to PANews, the Monetary Authority of Singapore (MAS) has clarified the scope of its licensing regime for Digital Token Service Providers (DTSPs). Starting June 30, 2025, DTSPs offering services related to digital payment tokens and capital market product tokens exclusively to overseas clients will be required to obtain a license. The MAS has set high standards for licensing due to the elevated risk of money laundering associated with these activities, which primarily occur outside Singapore, making effective regulation challenging. Unlicensed providers will be required to cease regulated activities. Providers offering services to Singaporean clients are already regulated, and their scope of business remains unchanged. They are also permitted to serve overseas clients. Providers dealing with utility tokens and governance tokens will not be affected by the new regime. Given the higher risks, existing DTSPs serving only overseas clients must halt such activities when the regime takes effect. Since February 2022, MAS has consistently communicated its stance and engaged with potentially affected parties, noting that the number of such providers is minimal.