Singapore Imposes Strict Licensing Requirements on Crypto Firms with Severe Penalties

The Monetary Authority of Singapore (MAS) has unveiled stringent regulations for cryptocurrency firms operating overseas. Digital token service providers (DTSPs) must cease all unlicensed offshore services by June 30, 2025, or face penalties including fines up to $200,000 and three-year prison terms.

Under the Financial Services and Markets Act 2022, Singapore-based entities—whether individuals, businesses, or partnerships—must obtain a DTSP license or terminate cross-border operations immediately. No grace period exists for compliance, though firms already licensed under securities or payment laws are exempt.

The MAS emphasizes rigorous anti-money laundering (AML) and counter-terrorism financing (CFT) standards for license eligibility. This crackdown reflects Singapore's push to balance innovation with systemic risk containment in digital asset markets.