MAS Sets Timeline for Overseas Digital Token Service Notifications
In a major regulatory development, Singapore’s Monetary Authority (MAS) has issued a clear directive to crypto companies incorporated in Singapore: if you’re offering digital token services overseas, you must stop or get licensed by 30 June 2025.
The announcement follows MAS’s finalised response to its earlier consultation on the proposed regulatory framework for Digital Token Service Providers (DTSPs) under the Financial Services and Markets Act 2022 (FSMA). This move affirms MAS’s intention to close cross-border regulatory gaps and strengthen Singapore’s anti-money laundering and counter-terrorism financing (AML/CFT) safeguards.
What Has Changed?
Under Section 137 of the FSMA, any Singapore-incorporated entity, or individual or partnership operating from a place of business in Singapore is subject to licensing if they provide digital token services outside Singapore.
This means that crypto businesses currently serving overseas clients while based in Singapore must suspend or cease their operations by 30 June 2025, unless they are licensed or exempted under existing frameworks, such as the Securities and Futures Act, Financial Advisers Act, or Payment Services Act.
Notably, there will be no transitional period. This is a sharp contrast to other licensing regimes (e.g. under the Payment Services Act), where firms were often granted temporary exemptions or phased implementation timelines.
What Activities Are Affected?
“Digital token services” include a broad range of crypto-related activities, such as:
- Operating a digital token exchange
- Facilitating token transfers or custodial services
- Issuing digital tokens or managing token-based products
Importantly, even companies whose overseas crypto activities are not their core business will be caught under the new regime if they continue such services without a licence.
Serious Consequences for Non-Compliance
Failure to comply by the 30 June deadline could result in hefty penalties:
- Fines of up to SGD 250,000 ( Approximately USD 200,000)
- Imprisonment of up to three years
- Or both
MAS has made clear that enforcement action will follow if firms do not align by the deadline.
Why It Matters
This regulatory tightening is part of a broader global trend toward stricter oversight of digital asset firms and token service providers. By requiring DTSPs to hold licences even for overseas-facing operations, MAS is reaffirming Singapore’s commitment to being a trusted hub for regulated digital finance, not a soft-touch base for regulatory arbitrage.
It also sends a signal to the international community: Singapore is not a loophole for crypto firms seeking to bypass overseas regulation while operating from a compliant jurisdiction.
Contact Us Today
If your business offers digital token services, whether in Singapore or abroad, you may be affected by these changes. If you operate a global crypto business incorporated in Singapore and require clarity on what you can/cannot do with a crypto business incorporated in Singapore, please speak to our blockchain team for advice.
References
Monetary Authority of Singapore. (2025, May 30). Response to Feedback Received on Proposed Regulatory Approach, Regulations and Notices for Digital Token Service Providers issued under the Financial Services and Markets Act 2022 (P010-2024).
Available at; https://www.mas.gov.sg/-/media/response-to-feedback-received-from-dtsp-cp.pdf
