Singapore Tightens Crypto Regulations for Unlicensed Firms

Singapore's Monetary Authority (MAS) has mandated that all cryptocurrency firms serving overseas clients must obtain proper licensing or cease operations. The May 30, 2025 directive closes regulatory loopholes previously exploited by companies avoiding local oversight while catering to international markets.

This enforcement stems from the Financial Services and Markets Act (FSMA), enacted in 2022, which required digital token service providers to be licensed regardless of client location. "Firms playing regulatory pinball by jumping through loopholes are now facing checkmate," observes Joshua Chu, a Hong Kong-based Web3 legal expert.

The move reaffirms Singapore's commitment to structured crypto governance, balancing its reputation as a blockchain hub with rigorous compliance standards. Market participants must now choose between full regulatory adherence or market exit.