Singapore Cracks Down: Crypto Firms Must Get Licensed by June 30 or Shut Down

Singapore is taking a firm stand on crypto regulation, with the Monetary Authority of Singapore (MAS) issuing a strict June 30 deadline for unlicensed digital asset service providers. The move targets firms based in or staffed in Singapore that serve overseas customers, requiring them to obtain a license or shut down operations immediately, with no exceptions, no transition period.

No More Loopholes for Offshore Operations

The MAS officially confirmed it would enforce Section 137 of the Financial Services and Markets Act (FSM Act), which enables licensing for Digital Token Service Providers (DTSPs) operating from Singapore. The new rules apply even to firms that don’t serve local clients. According to MAS, the “technology-neutral, activity-based regulation” is necessary to close regulatory gaps that could otherwise be exploited.

The announcement followed a consultation launched in October 2024, during which most respondents supported regulation. However, calls for exemptions, especially for proprietary trading desks, OTC platforms, and offshore infrastructure-based operations, were rejected by the regulator, citing the elevated money laundering and terrorism financing risks in the crypto space.

Strict Requirements for Compliance

Firms now need to meet several conditions, like they need to hold a base capital of at least SGD 250,000 (around $185,000), re-onboarding customers with fresh due diligence, complying with the FATF Travel Rule, and adhering to robust technology risk standards. MAS also warned that even freelancers or consultants working for foreign crypto companies from Singapore could fall under the licensing mandate.

So far, MAS has granted 33 Major Payment Institution licenses to leading firms like Coinbase, Circle, OKX, Upbit, and DBS Vickers. Cumberland SG has received in-principle approval but awaits full licensing.

Global Crackdown Echoes

Singapore’s move reflects a growing global push for tighter crypto oversight. Recently, Australian watchdog AUSTRAC fined Melbourne-based exchange Cointree over $75,000 for delays in submitting suspicious activity reports, delays that hindered law enforcement.

As regulators worldwide close gaps in crypto compliance, Singapore is making it clear: only licensed players will be allowed to operate in its thriving digital asset hub.