Singapore’s reputation as a crypto-friendly hub is facing a new reality. As of June 30, 2025, every crypto firm based in Singapore—even those serving only foreign clients—must hold a Digital Token Service Provider (DTSP) license under the Financial Services and Markets Act (FSM Act). The Monetary Authority of Singapore (MAS) is enforcing this rule with no grace period or extensions, signaling a clear shift toward stricter oversight and consumer protection.
Why the Change?
The move is designed to close a regulatory gap that previously allowed companies to operate from Singapore while targeting global markets with minimal local oversight. Now, regardless of a firm’s size or the share of its business that comes from overseas, the same licensing requirements apply. This is part of a broader effort to align Singapore’s crypto sector with global standards and to protect the integrity of its financial system 4.
Impact on Crypto Firms
• Licensing or Shutdown: Firms must either obtain a DTSP license or cease operations involving foreign markets. This applies to all entities incorporated in Singapore, including companies, partnerships, and individuals 4.
• Penalties for Non-Compliance: Unlicensed firms that continue to serve overseas clients face fines of up to SGD 250,000 (about $200,000) and up to three years in prison.
• Industry Exodus: Smaller firms have already shut down, while major players like Bitget and Bybit are reportedly considering relocating to more accommodating jurisdictions such as Dubai or Hong Kong.
What’s Next for Singapore’s Crypto Scene?
Despite the tighter rules, Singapore remains committed to supporting blockchain innovation—but within a regulated framework. The MAS is focused on ensuring that firms are not only compliant on paper but also operationally sound, with robust anti-money laundering controls, local compliance officers, and cybersecurity audits .
Expert Perspectives
Industry experts note that Singapore’s approach is about balancing the need to attract business with the imperative to manage risk. While some firms may leave, the new rules are expected to foster greater trust and stability in the long run. Other financial hubs may soon face similar decisions as global standards evolve.
Key Takeaways
• All Singapore-based crypto firms must be licensed, even if they only serve foreign clients.
• No grace period: Firms must comply or shut down by June 30, 2025.
• Penalties include heavy fines and possible jail time for non-compliance.
• Major firms are considering relocating to more crypto-friendly jurisdictions.
• Singapore aims to maintain its reputation as a secure and innovative financial center.
