Singapore Orders Unlicensed Crypto Firms to Halt Overseas Operations by 2025

The Monetary Authority of Singapore (MAS) has issued a stern warning to all domestic crypto service providers without a Digital Token Service Provider (DTSP) license, mandating that they cease all overseas operations by June 30, 2025. This directive is part of a broader effort by Singapore to enhance regulatory oversight and safeguard its growing number of retail crypto users.

According to MAS, only those crypto firms that have received formal approval under the Payment Services Act are permitted to serve overseas clients. Entities that have not obtained such approvals must completely halt these activities. The regulatory body emphasized that the prohibition applies regardless of whether overseas services are provided directly or through intermediaries. MAS warned that attempts to circumvent the rules by relocating parts of operations abroad while continuing to manage them from Singapore would be considered non-compliant.

In response to industry feedback, MAS clarified that cross-border services offered without regulatory clearance could expose users to unfair practices and raise the risk of financial misconduct. The authority rejected calls for a phased transition, noting that firms have been aware of these requirements since the consultation process began and should already be in position to comply. MAS added that its approach balances consumer protection with the aim of fostering a safe digital asset ecosystem.

To reinforce accountability, MAS stated it will actively monitor and investigate suspicious setups that appear designed to bypass licensing. This regulatory crackdown comes as more individuals in Singapore embrace digital assets. A report found that a significant percentage of the population owned digital assets, with adoption highest among younger generations. Among crypto holders, a majority have used digital tokens for payments, and a substantial number plan to do so in the future. The most common uses include online shopping, bill payments, and in-store purchases, with older users favoring peer-to-peer transfers, particularly across borders.

Despite increasing usage, concerns remain. A significant portion of respondents in the survey said crypto is still too complex to use, while a majority cited limited merchant acceptance as a major barrier. Even so, crypto transaction volumes are on the rise, placing Singapore at the center of Asia’s regulated digital finance push. This regulatory move by MAS underscores Singapore's commitment to creating a secure and transparent environment for digital asset transactions, ensuring that only licensed and compliant firms can operate within its jurisdiction.