- MAS bans overseas crypto services from Singapore without DTSP license after June 30; enforcement uses FSM Act powers.
- Licensed providers need $185,000 capital, must follow FATF travel rules, tech standards, and strict customer checks.
Singapore’s financial regulator will shut down unlicensed cryptocurrency firms operating abroad starting July 1st. The Monetary Authority of Singapore (MAS) announced this enforcement action under the Financial Services and Markets Act of 2022 (FSM Act). Companies providing digital token services overseas must cease operations immediately or obtain a specific license.
The MAS requires these firms to hold a Digital Token Providers Service (DTSP) license. Companies must secure this license before the June 30th deadline. The regulator confirmed it will not offer a grace period. MAS officials stated firms have had sufficient time to apply. The authority plans increased monitoring. It will investigate any activity suspected of deliberately avoiding the new rules.
This license requirement extends to individuals. Independent professionals working in crypto must comply if they conduct business from Singapore. Their specific role determines if they need the license. Only firms already licensed or exempt under other Singapore laws escape this obligation. These include entities covered by the Securities and Futures Act, the Financial Advisors Act, or the Payment Services Act.
MAS described its approach as balancing innovation promotion with consumer protection. Firms obtaining the DTSP license face several obligations:
- They must maintain at least $185,000 in base capital.
- They must conduct new customer due diligence checks.
- They must comply with the FATF travel rule for crypto transactions.
- They must meet Singapore’s technology risk management standards.
Non-compliance carries serious penalties. Section 137 of the FSM Act mandates licensing for entities operating from Singapore. Violators face fines up to 250,000 Singaporean dollars ($200,000). Individuals responsible could also receive prison sentences of up to three years. The MAS aims to foster a secure environment for crypto activities linked to Singapore.
