On 6 June 2025, the Monetary Authority of Singapore (MAS) published a media release on the scope and compliance requirements under the Singapore’s Digital Token Service Provider (DTSP) regulatory regime, under the Singapore Financial Services and Markets Act 2022 (FSMA 2022). The clarification is regarding the MAS’s response to DTSP consultation feedback along with annexures released on 30 May 2025 which cumulatively provides for licensing regime, licensing thresholds, regulatory exemptions, and enforcement timelines for DTSPs engaging in digital payment token and capital market token services in Singapore.
Effective 30 June 2025, all Digital Token Service Providers that provide services exclusively to overseas customers involving either digital payment tokens or tokens representing capital market products will require a regulatory licence from the Monetary Authority of Singapore. MAS has indicated it will generally not issue licences for such cross-border models due to elevated money laundering risks and insufficient supervisory control. Entities that fail to obtain a licence must cease all regulated activities by the implementation date.
MAS in its press release confirmed that Singapore-based DTSPs currently licensed to serve local customers may continue to offer services globally, while services involving only utility or governance tokens remain outside the regulatory perimeter and unaffected by the new regime.
MAS stated that DTSPs currently operating outside Singapore but serving only foreign clients will not be permitted to continue operations without a licence. The authority had earlier reached out to identified firms likely to be affected, encouraging them to implement orderly wind-down procedures. This position has been consistently communicated across MAS publications since February 2022. With the licensing regime under FSMA 2022 now fully operational from 30 June 2025, affected DTSPs must immediately assess their service models, regulatory exposure, and legal obligations under Singaporean law.
