Michaela
Singapore’s central bank has given local crypto firms until June 30 to stop providing digital token (DT) services to foreign markets or risk facing significant fines and regulatory action.
The Monetary Authority of Singapore (MAS) announced penalties of nearly $200,000 as part of a new directive targeting Digital Token Service Providers (DTSPs). The move comes after the regulator reviewed public feedback on its proposed framework under the Financial Services and Markets Act (FSM Act).
The MAS confirmed that no grace period will be offered to local DTSPs currently serving international clients. It emphasized that any entity or individual in Singapore offering digital token services overseas must either halt those activities or secure the necessary license before the new DTSP regulations take effect at the end of June.
“DTSPs which are subject to a licensing requirement under section 137 of the FSM Act must suspend or cease carrying on a business of providing DT services outside Singapore by 30 June 2025,” the directive stated.
Section 137 of the FSM Act states that crypto firms based in Singapore are presumed to be conducting operations within the country and therefore must obtain the appropriate license to offer financial services, including DT activities.
Furthermore, the MAS clarified that only firms already licensed or exempted under existing financial regulations will be allowed to continue operating without violating the new framework.
Some industry participants have expressed concerns over the tight timeline outlined in the new regulatory directive, arguing that the four-week notice period is insufficient for firms to properly prepare and submit license applications — let alone allow the MAS adequate time to evaluate them.
“Respondents suggested MAS to consider providing a transitional period, a temporary exemption to allow applicants to continue providing DT services while their licence applications are under review, or to have an expedited review process for simple business models or applicants that are regulated in other jurisdictions,” MAS wrote.
MAS reiterated its cautious stance toward Digital DTSPs, citing heightened money laundering and terrorist financing risks due to the cross-border nature of their operations. It confirmed that no transitional period will be granted for overseas-focused DTSPs despite industry participants’ concerns.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
