Catenaa, Saturday, June 07, 2025- The Monetary Authority of Singapore has ordered all local digital token service providers to cease overseas operations by June 30 or face penalties, as part of a sweeping crackdown on unregulated crypto activity abroad.
In a statement issued Wednesday, the central bank announced that no transitional arrangements will be granted under Section 137 of the Financial Services and Markets Act of 2022. Companies incorporated in Singapore must suspend or terminate foreign digital token services unless they obtain a license under the new Digital Token Service Provider regulatory framework.
Firms that violate the mandate could be fined up to 250,000 Singapore dollars (approximately $200,000) and face imprisonment of up to three years. The directive applies even to companies for which digital token services are not the primary business activity.
The MAS said licenses would be granted only under exceptional circumstances, citing risks tied to anti-money laundering and counter-terrorist financing. Legal experts noted that most applications are unlikely to succeed. Hagen Rooke, a partner at Gibson, Dunn & Crutcher, advised firms to act swiftly to restructure operations and eliminate Singapore-based regulatory exposure.
The directive marks a sharp escalation in Singapore’s regulation of the crypto sector. Though long considered a crypto hub, Singapore has tightened compliance rules amid global scrutiny and past high-profile failures. The new rules aim to close loopholes that allowed companies to operate overseas without local oversight.
The FSM Act was passed in April 2022 to give MAS more authority over offshore crypto activities by Singapore-based firms.
