Singapore Tells Crypto Firms to Halt Overseas Ops by June 30

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has mandated that all domestic cryptocurrency service providers cease offering digital token (DT) services to overseas markets by June 30 2025. 

Overview

MAS said there will be no transitional provisions for local DTSPs operating overseas. It stated that all Singapore-incorporated entities— companies, individuals, or partnerships—offering digital token services abroad must either stop their activities or secure a licence by the time the new DTSP regulations take effect at the end of June. 

This directive aims to tighten regulatory oversight and address cross-border risks associated with digital assets. MAS noted, “DTSPs which are subject to licensing requirements under section 137 of the FSM Act must suspend or cease carrying on a business of providing DT services outside Singapore by June 30 2025.”

MAS Enforces Strict Deadline for Overseas Operations

Under Section 137 of the Financial Services and Markets Act (FSM Act) of 2022, MAS requires that any Singapore-incorporated company, individual, or partnership providing DT services outside Singapore cease operations or obtain a licence by the end of June. MAS emphasised that no transitional arrangements will be made for local Digital Token Service Providers (DTSPs) providing services abroad. 

Violators could face fines of up to 250,000 Singaporean dollars (approximately $200,000) and imprisonment of up to three years. MAS clarified that only firms licensed or exempted under existing financial laws, such as the Securities and Futures Act, Financial Advisers Act, or Payment Services Act, may continue to operate without conflicting with the new rules. 

Addressing Cross-Border Risks and Regulatory Concerns

The move signals a significant tightening of regulatory oversight on crypto activity by Singapore’s authorities. The mandate for DTSPs to cease overseas activities stems from regulatory developments addressing risks in the digital asset sector. In April 2022, Singapore passed the FSM bill, granting MAS greater authority to regulate crypto firms that operate outside the country but are based in Singapore. 

MAS expressed concerns that crypto firms could exploit regulatory gaps by registering in Singapore while conducting unregulated activities abroad. The law requires DTSPs with overseas operations to comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) standards, even if they do not offer services within Singapore.

Implications for the Crypto Industry

This regulatory crackdown unfolds as more Singaporeans embrace digital assets. A Straits Times report published in April found that 26% of Singaporeans owned digital assets in 2024, up from 24.4% the year before. Adoption is highest among younger generations, with nearly 40% of Gen Z and millennials holding cryptocurrencies.

Despite increasing usage, concerns remain. More than 60% of respondents in the survey said crypto is still too complex to use, while 54% cited limited merchant acceptance as a significant barrier. Crypto transaction volumes are rising, placing Singapore at the centre of Asia’s regulated digital finance push.

The MAS’s directive underscores Singapore’s commitment to fostering a safe digital asset ecosystem while balancing consumer protection. Companies are urged to consider swift action to de-risk through operational restructuring to remove their Singapore touchpoints.