The Monetary Authority of Singapore (MAS) has issued a directive requiring all domestic cryptocurrency service providers without a Digital Token Service Provider (DTSP) license to cease overseas operations by June 30.
The move marks a key step in the city-state’s broader push to tighten regulatory oversight and strengthen consumer protection in its rapidly evolving crypto market.
Singapore’s MAS has mandated that all local crypto firms without a DTSP license must stop serving overseas clients by June 30, 2025, with no transitional period allowed. Non-compliance will lead to penalties.https://t.co/wnQc0pMDqq
— Wu Blockchain (@WuBlockchain) June 2, 2025
According to the directive, only companies that have received formal approval under the Payment Services Act will be allowed to serve overseas clients. Firms that are still operating without a DTSP license must immediately cease all cross-border activities or face enforcement actions.
MAS emphasized that there will be no grace period or phased rollout for the requirement, noting that companies have had sufficient time to prepare since the initial public consultation phase. This firm stance reflects the regulator’s intention to strike a balance between innovation and investor safeguards.
“This approach strikes a balance between promoting innovation and safeguarding consumers,”
the central bank said in a statement, reaffirming its aim to foster a secure and transparent digital asset environment.
Furthermore, MAS clarified that the ban applies to all unlicensed overseas services, whether conducted directly or through intermediaries. The agency warned that attempts to bypass the rules by relocating operations abroad while continuing to manage them from Singapore will also be deemed non-compliant. To ensure adherence, MAS said it will step up surveillance and actively investigate any suspicious organizational structures designed to evade regulation.
This regulatory tightening coincides with a notable shift in investor behaviour. According to the 2025 Independent Reserve Cryptocurrency Index (IRCI), Singaporean investors are becoming more strategic and risk-aware. While 2024 witnessed a bullish run, nearly half of crypto holders exited positions to lock in gains, with 67% of sellers signaling a move toward calculated profit-taking rather than hype-driven speculation. As a result, overall crypto ownership in Singapore declined from 40% to 29%, with many investors consolidating their portfolios.
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