The Monetary Authority of Singapore (MAS) has mandated that all cryptocurrency trading platforms operating within Singapore must secure a Digital Token Service Provider (DTSP) license by June 30, 2025. This regulatory move aims to strengthen oversight of offshore crypto activities linked to the country, covering both centralized exchanges and decentralized finance (DeFi) protocols with Singaporean operational ties.
Non-compliant platforms risk severe penalties, including fines up to SGD 250,000 and imprisonment for up to three years. The enforcement underscores MAS’s commitment to mitigating financial risks and ensuring a secure crypto ecosystem while closing previous regulatory gaps for offshore entities.
Extending Singapore’s 2022 Financial Services and Markets Act, the directive explicitly targets overseas crypto operations to enforce local compliance standards. Though industry analysts predict the rules may temporarily reduce active platforms during adjustment periods, the framework is expected to bolster long-term investor confidence. This development aligns with global trends of heightened digital asset regulation, positioning Singapore as a pioneer in balancing technological innovation with systemic risk management.