Singapore Requires Crypto Firms to Obtain Licenses by 2025

MAS Sets 2025 Deadline for Crypto Licensing

The Monetary Authority of Singapore (MAS) mandates all crypto firms to obtain a Digital Token Service Provider (DTSP) license by June 2025. This requirement targets companies with personnel or operations in Singapore.

Recent regulatory actions by MAS include the enforcement of Section 137 of the Financial Services and Markets Act. Firms serving overseas clients from Singapore must comply or cease their services.

Operational Costs to Surge for Compliance

The new licensing requirement will cause increased operational costs, pushing firms to adapt to stringent measures. Market liquidity and crypto service continuity might experience disruptions.

Singapore’s move is aimed at enhancing consumer protection and mitigating money laundering risks. No exemptions are allowed, adding pressure on businesses to meet FATF standards.

Regulatory History Points to Decline in Crypto Firms

Previous enforcement actions by MAS resulted in reduced numbers of registered crypto firms and disruptions to services within Singapore. New rules follow Singapore’s historical trend of regulatory tightening.

The future landscape may see shifts in talent and capital to other jurisdictions. Firms will need to adjust to comply or move operations, adapting to the global regulatory environment.

Ravi Menon, Managing Director, Monetary Authority of Singapore (MAS), “Firms must either cease providing digital token services from Singapore to overseas customers, or obtain a required license under the FSMA by June 30.”