MAS crypto regulations entered a new phase with the introduction of rules effective June 30, 2025, under Singapore’s Financial Services and Markets Act (FSMA). The aim: close loopholes that allowed crypto firms to register locally while serving overseas customers. Now, any Digital Token Service Provider (DTSP) operating from Singapore—even if it serves purely foreign clients—must apply for a license or halt operations entirely.

From Cashtag to Compliance Playbook: Why the Shift Matters

The crypto industry’s past excitement over Singapore’s openness is giving way to caution and scrutiny. The MAS has set a high bar: filings must include details on financial crime safeguards, technology risks, and operational resilience. Licensing approvals are rare, and MAS has clearly indicated that it will generally not issue approvals for offshore-only service models.

A Financial Times commentary labelled the move a purposeful “cleanup,” not a ban. Indeed, the crackdown aligns with MAS’s broader ambition: repositioning Singapore as a regulatory-first jurisdiction for crypto.

Key Shifts Under the Hood: Custody, Capital, Marketing

A pivotal element to this regulation is crypto custody Singapore, where mixing user funds with platform funds is no longer acceptable. Custodial obligations now require segregated accounts, strong governance, and disaster protocols.

Marketing is under increased scrutiny. Promises like “safe yield,” “low risk,” or “guaranteed returns” are explicitly banned—across social media, influencer campaigns, and corporate messaging. Teams must ensure content reflects actual risks, not sales pitches.

Another piece driving change: MAS’s new Singapore crypto compliance requirements now includes financial institutions’ crypto diligence. Banks and service providers must distinguish between asset types and document user crypto wealth clearly.

What the New FSMA Licensing Means for MAS Crypto Regulations

Under section 137 of the FSM Act, any DTSP operating from Singapore must cease overseas token services by June 30 unless licensed. The deadline is firm: there is no grace period or phased deadline.

This specifically affects companies servicing only international clients from a Singapore base. Many such firms, like Bybit and Bitget, are now reportedly relocating operations to Hong Kong or Dubai.

How Singapore Compares Globally: A Trend in Regulatory Signalling

Singapore’s move reflects global shifts toward stricter crypto oversight. Unlike jurisdictions such as the UK, which have delayed enacting stablecoin or licensing frameworks, Singapore’s version is already active and enforceable.

While the U.S and the EU are developing post-2025 laws, MAS’s approach stands out for speed and clarity—marking Singapore as a compliance benchmark in Asia-Pacific.

Practical Advice for Crypto Founders and Teams

Founders need more than compliance theory—they need architecture maps. For instance, teams must rethink everything from wallet custody design, onboarding flows, to financial reporting systems. MAS expects logs, role delineation, and contingency strategies at entry.

Moreover, firms should audit whether they fall under DTSP definitions. Even stablecoin issuers or DApps may be caught if control or benefit traces back to Singapore teams.

Financial institutions must assess crypto wealth sources precisely. MAS guidance now mandates granular asset-level review—treating crypto users differently from typical HNW clients.

MAS Crypto Regulations as a Test of Product Integrity

In the latest regulatory shift, MAS crypto regulations are less about discouraging crypto, and more about remapping it. Only firms that embed safeguards, transparency, and risk discipline are likely to operate under this framework. The question isn’t whether you can build—but whether your build can operate under scrutiny.

Expect some firms to relocate, others to double down. But for the builders who stay, clarity and resilience will define the next wave of credible, compliant crypto products from Singapore.