The Singapore monetary authority (Mas) highlighted its Digital Token Service Provider (DTSP), after a general panic in the industry on a potential ban on cryptographic companies serving customers abroad abroad
In an announcement of June 6, Mas reiterated that from June 30, cryptographic companies “providing services only to customers outside of Singapore concerning digital payment tokens and chips of capital markets must be under license.”
However, the regulator warned that these licenses will only be granted in “extremely limited circumstances”.
“Mas has put the high bar for licenses and will not generally deliver a license,” said the agency, citing the difficulty of supervising offshore companies and the risks of money laundering as key concerns.
Mas is not able to effectively supervise these people, ”added the regulator. Consequently, companies unable to obtain licenses must “stop ceasing their regulated activities”.
In relation: The British FCA offers a ban on lifting of ETN Crypto for retail investors
The start of an crypto exodus?
The cryptography market noticed when the MAS has established a deadline of June 30 for local cryptography service providers to stop offering digital tokens to foreign markets earlier this month.
The new rules have already triggered a change. Crypto Exchange, based in India, but based in Singapore, Wazirx announced that it would move its operations to Panama, shortly after the MAS announced the deadline.
At the time of the announcement of the deadline, Hagen Rooke, partner of Gibson, Dunn & Crutcher, said that the licenses would only be issued in rare cases. In a post LinkedIn, he said:
“The MAS will grant licenses in the new framework only in extremely limited circumstances (such as this type of operating model generally gives rise to regulatory concerns, for example AML / CFT).”
In relation: Europe is preparing to regulate DEFI in 2026 while mica leaves the sector in limbo
Singapore tightens cryptography controls
Recent measures of Singapore regulators suggest that local authorities intend to maintain stricter control over the local cryptography industry. Today’s announcement said that cryptographic companies serving Singapore customers “are already subject to regulation”, the rules have therefore been extended to those who serve customers abroad. However, Mas said that not all services related to crypto are affected:
“Service providers concerning other tokens, such as those used only as uses of utility and governance, are not subject to licenses or regulations within the framework of the new regime, and are therefore not allocated.”
Singapore’s quarter of regulation follows May reports that digital assets are popular in the country. Awareness of cryptography of Singapore has reached a record level, 94% of respondents in a recent survey indicating a familiarity with at least a digital asset.
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