David Edwards
The Monetary Authority of Singapore (MAS) has confirmed sweeping restrictions under its Digital Token Service Providers (DTSPs) regime, effectively barring most crypto firms from offering services exclusively to overseas clients. The new directive, which takes effect June 30, 2025, marks a significant shift in Singapore’s digital asset regulation, signaling tighter scrutiny of the sector.
In its June 6 announcement, MAS clarified that firms dealing solely with customers outside Singapore in relation to digital payment tokens or capital market products must obtain a license. However, the regulator emphasized that such licenses will be issued only in “extremely limited circumstances,” citing the challenges of monitoring offshore entities and the heightened risk of money laundering.
“MAS has set the bar high for licensing and will generally not issue a licence,” the statement read. “MAS is unable to effectively supervise such persons,” it added, warning that firms unable to meet the requirements must cease their regulated activities.
This move has already triggered strategic exits from Singapore. Notably, WazirX—a crypto exchange serving Indian users but headquartered in Singapore—announced its relocation to Panama in response to the directive.
Legal experts suggest the policy reflects the regulator’s intent to limit cross-border activity that cannot be effectively supervised. Hagen Rooke, a partner at Gibson, Dunn & Crutcher, commented that MAS would grant licenses only in rare exceptions, particularly where anti-money laundering and counter-terrorism financing risks can be sufficiently mitigated.
Despite the tightening, MAS specified that firms handling utility or governance tokens remain outside the scope of the new licensing framework. As such, not all crypto-related services will be impacted.
Singapore’s regulatory posture comes as the city-state sees record-high crypto awareness, with 94% of locals familiar with digital assets, according to recent surveys. The new policy is likely to catalyze a realignment within the regional crypto industry, as firms reassess their operational and compliance strategies under increasingly stringent oversight.
