Singapore Financial Watchdog to Ban Overseas Crypto Services Without License

In brief

Singapore’s financial authority has set a June 30 deadline for crypto firms operating overseas from Singapore to obtain a license or shut down, citing financial crime risks.
The new rules apply to firms incorporated or staffed in Singapore serving only foreign clients, with no exemptions or transition period.
The move follows similar global crackdowns, including a recent AUSTRAC penalty against crypto exchange Cointree over delayed money laundering reports.

Crypto firms serving Singapore customers from outside the country must obtain a license or shut down by June 30, as the Monetary Authority of Singapore crack down on financial crime risks.

In a policy response published on May 30, MAS confirmed it would proceed with the full implementation of Section 137 of the Financial Services and Markets Act (FSM Act), which allows the regulator to license Digital Token Service Providers (DTSPs) operating from Singapore, a leading hub for digital asset businesses.

That includes companies incorporated locally or with staff based in Singapore that serve only overseas users.

“There will be no transitional arrangement,” the regulator said, warning that firms continuing operations without a license after June 30 would be guilty of an offence and subject to penalties.

MAS said a 4-week notice period issued alongside the document constituted sufficient lead time, urging all affected firms to act immediately.

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The document was released in response to industry feedback on a consultation paper first published in October 2024, which sought views on how to regulate DTSPs that operate cross-border.

MAS said most respondents supported licensing such entities, but several pushed for exemptions, especially for firms engaged in proprietary trading, OTC services, or those using overseas infrastructure.

The watchdog rejected those suggestions, saying that technology-neutral, activity-based regulation was needed to close regulatory gaps that could otherwise be exploited.

It justified its decision by citing heightened “money laundering and terrorism financing risks” associated with the borderless nature of digital token services.

The regulator also flagged “reputational risks” to Singapore if crypto businesses were allowed to operate internationally without controls simply because they had no domestic footprint.

Firms will be required to hold at least $185,000 (SGD 250,000) in base capital, re-onboard customers with fresh due diligence, implement the FATF Travel Rule, and comply with stringent technology risk standards.

MAS also warned that individuals working as independent consultants or freelancers for foreign crypto firms may fall under the licensing requirement, depending on the nature of their role and whether they are deemed to be conducting regulated business from Singapore.

As Singapore closes its doors on unlicensed players, other jurisdictions are stepping up enforcement too.

Last month, AUSTRAC fined Melbourne-based exchange Cointree $75,120 for late filings of suspicious matter reports linked to potential money laundering, saying the delay hampered swift law enforcement action.

As of June 2, 2025, the Monetary Authority of Singapore (MAS) has issued 33 digital payment token licenses, with major players like Coinbase, and Anchorage among the recipients.

Cumberland SG, the Asia subsidiary of U.S.-based crypto trading firm Cumberland, has received in-principle approval in March but has not yet been granted a full license.

Edited by Stacy Elliott.