Singapore Tightens Crypto Regulations, Mandates Licensing for All Digital Token Service Providers

Singapore's Monetary Authority (MAS) has enacted stringent new regulations requiring all digital token service providers (DTSPs) to obtain a license, even those exclusively serving overseas clients. The rules, effective June 30, leave little room for negotiation—firms without licenses must cease operations immediately.

The central bank explicitly stated it has "set the bar high for licensing" and will generally reject applications from businesses primarily catering to non-Singaporean customers. MAS cites heightened money laundering risks and jurisdictional challenges in supervising offshore-focused operations as key reasons for the crackdown.

This regulatory hardening follows Singapore's reputational damage from high-profile crypto collapses involving locally based firms Three Arrows Capital and Terraform Labs. The 2022 implosion of these entities—one resulting in a founder's imprisonment, the other in international fraud charges—wiped out billions in market value.