Singapore's MAS Implements Strict Regulations for Digital Token Service Providers

The Monetary Authority of Singapore mandates licensing for Digital Token Service Providers serving only overseas clients, effective July 1, 2025, to enhance regulatory compliance and mitigate money laundering risks.

Summary

The Monetary Authority of Singapore (MAS) has clarified that Digital Token Service Providers (DTSPs) offering services exclusively to overseas clients must obtain a license by July 1, 2025. This regulation aims to mitigate money laundering risks, while existing providers serving Singaporean clients remain unaffected. Exemptions are in place for those dealing only with utility and governance tokens.

Terms & Concepts
  • Digital Token Service Provider (DTSP): Entities providing services related to digital tokens, including those operating in Singapore or serving clients outside the country.
  • regulatory arbitrage: The practice of taking advantage of differences in regulatory regimes to circumvent unfavorable regulations, which is now curtailed in Singapore.