Singapore’s central bank, the Monetary Authority of Singapore (MAS), has issued a firm deadline for cryptocurrency service providers: obtain a Digital Token Service Provider (DTSP) license by June 30 or shut down operations.
The directive applies to firms based in Singapore that offer crypto-related services overseas.
MAS stated that no additional grace period will be offered, noting that providers have had ample time to meet regulatory expectations. The regulator also announced plans to intensify enforcement efforts and monitor for any attempts to sidestep compliance.
“This regulatory move is designed to ensure responsible innovation while safeguarding investors and the financial system,” MAS stated, underscoring its dual focus on development and consumer protection.
The requirement extends beyond companies — individuals involved in digital token services may also need to secure a license, depending on their business activities and location. Only entities already regulated under Singapore’s Securities and Futures Act, Financial Advisers Act, or Payment Services Act are exempt from this new obligation.
Under Section 137 of the Financial Services and Markets (FSM) Act, failure to comply could result in severe penalties: a fine of up to SGD 250,000 (about USD 200,000) or imprisonment for up to three years.
So far, MAS has approved 33 digital payment token licenses, with notable recipients including Coinbase and Anchorage. The authority believes this licensing regime will help reduce risks associated with illicit finance and foster a secure digital asset environment.
