MAS releases new rules: Singapore tightens token regulation as service stops on June 30

Recently, the Monetary Authority of Singapore (MAS) issued new regulations, clarifying that from June 30, 2025, all digital token service providers (DTSPs) operating in Singapore but only providing digital payment tokens (DPT) and capital market product token services to overseas customers must obtain relevant licenses issued by MAS in accordance with the law before they can continue to conduct business legally. Unlicensed companies will be prohibited from providing such services. This decision means that the compliance costs and entry barriers of overseas digital token platforms that have long been established in Singapore but have not opened services to local customers will be significantly increased.

Although the trading objects of these platforms are mainly overseas, the Singapore government believes that as long as the corporate entity is registered locally, all its token-related businesses should still be included in the country's regulatory system. MAS pointed out that without supervision, such institutions may become channels for cross-border money laundering or illegal capital flows, thereby posing a potential threat to Singapore's overall financial ecology.

The new regulations also point out that if a DTSP only provides services related to utility or governance tokens, it will not be included in this round of supervision. This regulation reflects that while MAS is promoting supervision, it also strives to reserve a certain development space for start-ups and technology projects. This "differentiated supervision" strategy will help encourage innovation in blockchain infrastructure and leave enough room for adjustment in subsequent supervision.

In addition, given the high risks, existing DTSPs that only provide services to overseas customers must stop such activities when the system takes effect. It is reported that MAS has been continuously conveying its position and communicating with those who may be affected since February 2022, and the number of such providers is extremely small.

This new regulation has a far-reaching impact on Singapore's crypto ecosystem. On the one hand, some cryptocurrency platforms that were previously registered in Singapore but mainly served overseas users now need to obtain MAS licenses, otherwise they will face the risk of suspension of services. On the other hand, MAS also made it clear that if a company cannot effectively prove that it has internal mechanisms for anti-money laundering and counter-terrorist financing, it will generally not issue a license. This means that a large number of small and medium-sized DTSPs may exit the market due to failure to meet compliance requirements. In the view of Mobile Payment Network, this will promote further centralization of the industry and help improve overall security and transparency.

It is worth noting that MAS's regulatory extension this time is not an isolated act. In recent years, Singapore has continuously strengthened its management of the digital asset field through the Payment Services Act (PSA) and the Financial Services and Markets Act (FSM Act). It is reported that this DTSP regulatory extension constitutes a powerful supplement to the existing legal system, and for the first time systematically incorporates the regulatory vision of "overseas service behavior", reflecting the regulatory authorities' broader and more dynamic response capabilities to new financial activities.

According to the official website of Singapore Mas, 24 companies including COBO, ANTALPHA, CEFFU, MATRIXPORT are on the exemption list, and 33 companies including BITGO, CIRCLE, COINBASE, GSR, Hashkey, OKX SG have obtained DTSP licenses.

For these licensed and exempted companies, the new policy has created a fairer competitive environment, enhanced the reputation value of licensed institutions, and laid the foundation for global expansion. Correspondingly, when the era of regulatory arbitrage ended, some offshore crypto companies based in Singapore have begun to migrate to Hong Kong, Dubai, Malaysia and other places.

Among the world's major economies, Singapore has always been regarded as one of the most crypto-friendly countries. The introduction of the new regulations does not mean that the country's attitude has cooled, but rather that it hopes to enhance its position as a fintech center with a more mature regulatory framework. As "transparency and compliance" gradually become a global consensus, Singapore hopes to provide a clearer development path and institutional guarantees for truly innovative and stable digital asset projects through the continuous evolution of legislation and law enforcement tools.