Singapore’s central bank has set a June 30 deadline for crypto companies operating abroad, with penalties of up to $200,000.
The Monetary Authority of Singapore (MAS) has issued a firm ultimatum to the crypto industry. Local firms providing digital asset services to international markets must cease those operations by June 30, 2025.
MAS announced the directive in response to industry feedback on the new regulatory framework for Digital Token Service Providers (DTSPs) under the Financial Services and Markets Act (FSM Act) of 2022.
The new rules offer no transition period for local firms operating overseas. Any company or individual based in Singapore offering digital asset services abroad must choose one of two options: either halt all operations or obtain a specific license before the June deadline.
The regulation makes it clear that “DTSPs subject to licensing requirements under section 137 of the FSM Act must cease or suspend providing DT services outside Singapore by June 30, 2025.”
Penalties for non-compliance
Companies that fail to comply with the new requirements face fines of up to 250,000 Singapore dollars (around $200,000) and prison terms of up to three years.
Under section 137 of the FSM Act, all Singapore-based firms are automatically considered to be operating from the country and are therefore subject to licensing obligations.
Licenses will be rare, legal experts warn
Securing licenses to continue overseas operations will be difficult, according to industry analysts. Hagen Rooke, Partner at Gibson, Dunn & Crutcher, explained in a LinkedIn post that authorizations will only be granted in exceptional cases.
“The MAS will grant licences under the new framework only in extremely limited circumstances (as this type of operating model generally gives rise to regulatory concerns, e.g. AML/CFT-related),” Rooke stated.
The only exemptions apply to companies already licensed under existing financial regulations: the Securities and Futures Act, Financial Advisers Act, or Payment Services Act.
The Financial Services and Markets Act, passed in April 2022, granted MAS broader powers to regulate crypto firms that, while headquartered in Singapore, primarily serve foreign markets.
