Singapore issues June 30 deadline to crypto firms serving international clients without DTSP license

The Monetary Authority of Singapore (MAS) instructed all local crypto firms without a DTSP license to stop serving overseas clients by June 30, 2025. The regulator also said no transitional period will be allowed, and non-compliance will lead to penalties.

The MAS announced on May 30 that it will publish the commencement notification for the FSM Act and all finalized versions of the guidelines at least four weeks before the date of the start of the DTSP Provisions.

The regulator also described situations where a DTSP (Digital Token Service Provider) license would lapse in the FSM regulations.

MAS proposes regulatory guidelines for digital token service providers

On 4 October 2024, the MAS proposed regulatory guidelines for digital token service providers issued under the Financial Services and Markets Act 2022. Under the proposal, the regulator argued that DTSPs may be more susceptible to money laundering or terrorism financing risks due to the internet-based and cross-border nature of crypto services.

The MAS published on 2 April 2024 requirements for digital payment token service providers on anti-money laundering (AML) and countering the financing of terrorism.

According to the MAS, the regulator will take into account whether the firm can demonstrate it has valid reasons for not providing DT services in Singapore despite operating in Singapore. The agency will also consider an applicant that does not operate in a manner of concern to MAS.

The applicant had to be already regulated and supervised for its compliance with relevant internationally agreed standards established by the Financial Stability Board, the International Organisation of Securities Commissions, and FATF by all relevant supervisions in countries in which they provide DT services outside of Singapore.

According to MAS, several applicants raised concerns that the proposed four-week commencement notification period is insufficient for applicants to prepare a license application for review. The respondents suggested that the regulator consider a transitional period, a temporary exemption to allow applicants to continue providing DT services while their license applications are under review.

Other respondents also suggested the MAS adopt a tiered fee structure of license application fees and annual DTSP license fees, depending on an applicant’s size and scope of business operations.

MAS said the proposed DTSP license would be structured similarly to the license application fees and annual license fees applied to firms that provide digital payment token services. 

According to the regulator, another respondent sought clarification on whether the annual license fee payable by licensees would differ based on the number of DT services provided.

MAS said the fees will remain fixed regardless of the size and scope of the DTSP’s business operations. The regulator also announced that all licenses would be subject to an annual license fee of $10,000, regardless of the number of DT services it provides.

MAS also proposed minimal initial and ongoing financial requirements for licensees to demonstrate their commitment to maintaining a meaningful presence in Singapore. The regulator revealed it will maintain the minimum initial and ongoing financial requirements of $250,000 in base capital, total capital contribution, and cash deposit.

Singapore regulator issues competency requirements on its expectations

The response to the consultation initiated on Oct 2024 and released on May 30 – https://t.co/QIIh2qKaJZ

— Priya Karnik(priyak.eth) (@karnik_priya) June 2, 2025

Singapore’s regulator also set out guidelines on the competencies of the CEOs, directors, partners, and managers of the licensee for DTSPs. Competency requirements include having sufficient experience in operating a DTSP business as well as having a sufficient understanding of the regulatory framework for DTSPs in Singapore.

Guidelines on licensing for DTSPs will also include MAS expectations of firms in managing key risks associated with their business activities, which MAS will consider when processing license applications.

MAS requires licensees to conduct independent audits of the transactions related to the DT services provided and submit the audit report to the regulator annually. The regulator said it would take into consideration the findings of the audit report and may require an auditor to carry out additional duties, such as enlarging the scope of the audit.

According to MAS, a firm needs a licensing requirement if it’s located in Singapore and is carrying on a business of providing DT services to individuals outside the country. The regulator also noted that an employee of a foreign-incorporated company that provides DT services outside Singapore as part of employment would not attract a licensing requirement.

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