News View Non-AMP

Singapore to Jail Unlicensed Crypto Firms, Impose $200K Fine

Published by
Elena R and Nidhi Kolhapur

The Monetary Authority of Singapore (MAS) has announced tough new rules for crypto companies offering overseas services. Under the latest guidelines, digital token service providers (DTSPs) must stop all overseas operations by June 30, 2025, unless they are officially licensed — or face a fine of up to $200,000 and jail time of up to 3 years.

Strict Compliance or Severe Penalties

Under the Financial Services and Markets Act (FSM Act 2022), any Singapore-based entity — including individuals, businesses, and partnerships — providing digital token (DT) services to overseas users must either:

  • Obtain a Digital Token Service Provider (DTSP) license, or
  • Cease overseas operations immediately

Failing to comply with this new framework will result in severe penalties: Up to SHD 250,000 (USD 200,000) fine Up to 3 years of imprisonment

Key Takeaways From MAS Crypto Guidelines

  • No Grace Period:
    Existing service providers will not get any transition time or phased licensing. The deadline is final — June 30, 2025.
  • License Exemptions:
    Entities already licensed under the Securities and Futures Act, Financial Advisors Act, or Payment Services Act are exempt from the new licensing requirement.
  • Strict AML/CFT Conditions:
    Only those companies with strong anti-money laundering (AML) and counter-financing of terrorism (CFT) measures in place will be eligible for the new DTSP license.

Why This Crackdown?

The MAS aims to eliminate regulatory arbitrage, where crypto firms use Singapore as a legal base while operating freely in foreign markets without proper oversight.

This move is part of Singapore’s broader plan to strengthen financial integrity, protect its global reputation, and prevent misuse of its crypto-friendly image.

No More Loopholes

Section 137 of the FSM Act states that any business incorporated in Singapore is legally considered to be operating from Singapore, even if its customers are overseas.

This means companies can no longer bypass foreign rules while being based in Singapore. The MAS directive closes all backdoors, ensuring complete regulatory clarity.

With no grace period, no phased transition, and tough penalties, Singapore is sending a strong message: crypto regulation must be respected — locally and globally.

FAQs

What is the Financial Services and Markets Act (FSM Act 2022) in Singapore?

The FSM Act 2022 is an omnibus law in Singapore that provides a sector-wide regulatory framework for financial services and markets, consolidating existing powers and introducing new provisions for areas like digital token service providers to enhance oversight.

What are Digital Token Service Providers (DTSPs) in Singapore?

DTSPs are individuals, partnerships, or Singapore corporations providing digital token services (like dealing, exchanging, transferring, or safeguarding digital payment tokens or tokenized capital markets products) from Singapore to customers outside Singapore.

Why is MAS implementing these strict new crypto guidelines?

MAS is cracking down to eliminate regulatory arbitrage, where firms use Singapore as a base to serve foreign markets without oversight. This strengthens financial integrity and protects Singapore’s reputation against misuse.

Elena R and Nidhi Kolhapur

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

Trust with CoinPedia:

CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.

Investment Disclaimer:

All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.

Sponsored and Advertisements:

Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.

Recent Posts

Cardano Price Breakdown, Can ADA Hold $0.55 After Losing $0.61 Support?

Cardano’s price action this week has left traders on edge as the much-watched $0.61 support…

October 31, 2025

XRP News: Should Retail Investors Exit as Ripple Targets Wall Street?

Ripple’s recent acquisitions and partnerships are revealing a larger strategy that appears to move far…

October 31, 2025

Binance Backs AI16Z Rebrand to ELIZAOS

Binance will support the token swap, redenomination, and rebranding of ai16z (AI16Z) to elizaOS (ELIZAOS)…

October 31, 2025

SHIB Price Forecast: Whales Choose PEPE Over SHIB, but This Breakout Altcoin May Outperform Both

In a not-so-surprising turn of events, on-chain data has indicated that the whales are choosing…

October 31, 2025

Bitcoin SV Price Prediction 2025, 2026-2030: Will BSV Price Hit $100?

Story Highlights The Live Price Of Bitcoin SV BSV has traded under the 200-day EMA…

October 31, 2025

Bitcoin and Ethereum Face $16B Options Expiry Today, Market Braces for Volatility

The crypto market is on edge as more than $16 billion worth of Bitcoin and…

October 31, 2025