MAS: digital token services for overseas customers must be licensed by 30 June or cease operations
MAS issued a clarification on 6 June 2025, reiterating that the licensing bar will be set 'high' and that such licences will 'generally' not be issued.
The central bank cited elevated money laundering risks and supervisory limitations as key reasons.
'If their substantive regulated activity is outside of Singapore, MAS is unable to effectively supervise such persons,' it stated.
DTSPs that continue to offer services to only foreign clients without a licence after 30 June will be required to cease those activities.
MAS has communicated this position consistently since 14 February 2022, reaffirming it in statements dated 4 October 2024 and 30 May 2025.
On 30 May 2025, MAS released its response to feedback on the Consultation Paper on Proposed Regulatory Approach, Regulations, Notices and Guidelines for DTSPs.
The proposed framework falls under the Financial Services and Markets Act 2022.
According to the regulator, the internet-based and cross-border nature of these services increases the likelihood of misuse for money laundering and terrorism financing, posing risks to Singapore's financial integrity.
MAS also clarified that DTSPs already licensed to serve Singapore customers are unaffected. These entities may also serve overseas clients as part of their operations.
Providers dealing with tokens other than payment or capital market types – such as utility or governance tokens – are not subject to the new licensing requirement.
MAS emphasised that the upcoming framework targets only a small segment of DTSPs. 'Based on available information, we are aware of a very small number of such providers,' the authority stated.
The regulator has reached out to those likely to be affected to clarify its policy and discuss an orderly wind-down of operations. Affected parties are advised to contact MAS at AMLCFT@mas.gov.sg.
This move aligns with MAS' broader efforts to fortify Singapore's financial ecosystem against illicit financial activities, without disrupting regulated providers already operating within the city-state.
Singapore rejects crypto for SWFs investments over speculation, volatility
During Parliamentary sitting on 5 March, then-Minister of State for Trade and Industry and MAS Board Member Alvin Tan reaffirmed that cryptocurrencies are unsuitable for Singapore's sovereign wealth funds due to their speculative and volatile nature.
He emphasised that both the Government and MAS view cryptocurrencies as lacking the underlying economic fundamentals required for long-term institutional investments.
This stance was reiterated in response to WP MP Jamus Lim's queries on whether cryptocurrencies could play a role for institutional investors, to which Tan questioned the Workers' Party's position and reaffirmed the Government's cautious approach.
Tan also responded to concerns from MP Yip Hon Weng about the tightening of regulations on crypto-related services, especially the prohibition of using credit or leverage for crypto purchases.
He warned of the risks of compounded debt and financial loss due to the high volatility of cryptocurrencies.
Addressing whether a total ban was considered, Tan explained that MAS prefers regulation and education over prohibition, aiming to avoid driving crypto trading underground while fostering a responsible digital asset ecosystem.
Temasek's FTX investment: Losses, internal review, and accountability measures
Temasek invested US$275 million in FTX across two funding rounds in 2021, believing in the exchange's potential and its role in the digital asset ecosystem.
However, in November 2022, FTX collapsed due to liquidity issues and allegations of fraud, leading to its bankruptcy.
Following the collapse, Temasek wrote off its entire investment in FTX, acknowledging the loss.
In May 2023, Temasek announced that it had conducted an internal review of its due diligence process.
As a result, it cut the compensation of its senior management and investment team responsible for the failed investment.
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