Singapore’s Monetary Authority (MAS) is enforcing stricter measures requiring all cryptocurrency firms operating without a local license to cease operations immediately. This directive, with an urgent deadline, forms part of intensified efforts to ensure transparency and adherence to the Financial Services and Markets Act 2022.
The regulation specifically targets the front-office activities of unlicensed entities, demanding they halt all operational functions including sales and promotional efforts within Singapore. MAS clarifies that the requirement to exit applies to any platform serving Singapore-based users without the necessary license.
The move impacts a limited number of firms but addresses significant regulatory ambiguity, particularly concerning the unclear operational headquarters of many crypto companies. Legal experts highlight that this could mean heightened risk for companies utilizing Singapore-based teams to manage offshore services without robust legal separation.
Industry analysts view MAS’s action as a clear signal that Singapore is adopting a more cautious approach towards cryptocurrency business operations, emphasizing stringent compliance within its jurisdiction.