MAS solves industry problems by clarifying the regulatory system for digital token service providers.
Alisa Davidson
Post: June 6, 2025 9:29 AM Update: June 6, 2025 9:29 am
Edit and fact confirmation: June 6, 2025 9:29 am
simply
MAS explained that from June 30, local digital token service providers, which provide services to external customers in Singapore, should be licensed or stop operating, and utility and governance token providers must be exempted from license requirements.
The Monetary Authority of Singapore (MAS) provided a description of the DTSP (Digital Token Service Providers) regulatory framework. Starting June 30, 2025, DTSP offers DTSPs that provide services to external customers outside Singapore related to digital payment tokens and tokens related to digital payment tokens and capital market products to get license.
The MAS has set a strict standard for licenses, generally does not give licenses to these business models, and cite effective supervision problems when the risk of money washing is increased and first -regulatory activities occur outside Singapore. According to these conditions, DTSP operated without license is necessary to stop regulatory activities.
Service providers dealing with digital payment tokens or tokens related to capital market products that provide services to customers in Singapore have already been regulated and there is no change in the scope of allowed activities. This license provider can also expand its service to customers outside Singapore.
In addition, service providers related to other types of tokens, such as utility or governance tokens, are not affected by these requirements because they are not subject to license or regulation according to the current framework.
In addition, as the risks related to the specific conditions are increased, the existing digital token service provider (DTSP), which provides services only to customers outside Singapore, should stop this activity if the regime comes into effect on June 30, 2025. MAS maintained a consistent attitude toward an initial consultation on public consultation on February 4, 2022. 2025.
The authorities also contacted organizations that could be affected by the DTSP regulations according to the available information, clarifying the policy and discussing plans for the order of interruption of their activities. The agency pointed out that only such a very small number of suppliers exist.
Singapore orders local encryption companies to stop overseas activities until June 30.
The agency has been explained in accordance with a wide range of concerns after the local digital token service provider is required to stop providing services to the overseas market by the closing date of June 30.
MAS emphasized that there will be no transitional contracts for local DTSPs operating overseas. All companies, individuals, or partnerships founded in Singapore, all companies, individuals, or partnerships that provide digital token services outside the country, should stop these operations or get licensed if the DTSP regulations come into effect at the end of June. According to Article 137 of the Financial Services and Markets Act, a company headquartered in Singapore is considered to be operated in Korea, so it must be licensed even if overseas token -related activities are not a major business line.
A group found in violation of this rule can face a fine of up to 250,000 Singapore dollars (approximately $ 200,000) and a fine for up to three years as summarized.
The agency now explains that suppliers who provide services related to utility and governance tokens are exempt from these regulations and do not need to find a license.
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About the author
Alisa, a dedicated reporter for MPOST, specializes in the vast areas of Cryptocurrency, Zero-ehnowedge Proofs, Investments and Web3. She provides a comprehensive coverage that captures a new trend and a keen eye on technology, providing and involving readers in a digital financial environment that constantly evolves.
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Alisa Davidson
Alisa, a dedicated reporter for MPOST, specializes in the vast areas of Cryptocurrency, Zero-ehnowedge Proofs, Investments and Web3. She provides a comprehensive coverage that captures a new trend and a keen eye on technology, providing and involving readers in a digital financial environment that constantly evolves.
More