Unlicensed crypto services in Singapore will be required to close from the end of June
Date: 2025-06-09 Author: Gabriel Deangelo Categories: IN WORLD
New requirements for digital token service providers (DTSPs) will come into force in Singapore on June 30, 2025. All crypto services that do not have the appropriate license will have to stop their operations in the country.
These measures are approved under the Financial Services and Markets Act. The Monetary Authority of Singapore (MAS) published the final version of the rules on May 30, and, as it turns out, there is no transition period for bringing businesses into compliance with the new standards. The new requirements apply not only to organizations registered in Singapore, but also to foreign companies that have a “place of business” in the country.
The DTSP category includes various participants in the crypto market - from large centralized exchanges and DeFi platforms to individual developers, consultants, influencers and heads of crypto projects. MAS defines a “place of business” as any physical location in Singapore where services are provided, including mobile booths, co-working spaces, or temporary offices.
Baker McKenzie lawyers raised concerns about how remote work is being treated. In response, MAS explained that if a person works from home and is employed by a foreign company, then a license is not required. However, if an employee uses a co-working space or other office space, then such actions may be considered an offense.
According to the new rules, it is prohibited to carry out activities related to digital tokens without a license if they are carried out from Singapore. This applies not only to the companies themselves, but also to individual employees - including directors, salespeople, managers, and consultants working from partner offices.
To date, licenses have been issued to only 33 companies, including Coinbase, Circle, DBS Vickers, FOMO Pay, OKX, Upbit and others. For other organizations, this means an urgent need to bring their activities into compliance with the law or leave the market.
It is worth recalling that Singapore became the world leader in the level of cryptocurrency adoption in 2024. The new regulatory procedure is designed to strengthen control and increase transparency in the digital asset market.
