Singapore Gets Tough on Crypto: Local Firms Ordered to Cease Overseas Operations by Jun 30

SINGAPORE:
In a bold regulatory move, the Monetary Authority of Singapore (MAS) has issued a directive mandating all local cryptocurrency service providers to halt their overseas operations by June 30, a decision that has sent shockwaves across the global digital finance ecosystem.

Announced on May 30, this step marks a crucial turn in Singapore’s approach to regulating the fast-evolving crypto space. The MAS has clarified that Digital Token Service Providers (DTSPs) must secure proper licensing within the country before extending their services beyond national borders. Importantly, no grace period will be granted to firms that continue unlicensed international operations — a signal of the regulator’s zero-tolerance policy on non-compliance.

The move coincides with the impending enforcement of significant clauses under the Financial Services and Markets Act 2022, which is set to take effect from June 30. Companies that fail to fall in line face stringent penalties, with MAS emphasizing the importance of operational transparency, cybersecurity, and consumer protection.

Under the new framework:

• All licensed crypto firms must pay an annual licensing fee of $10,000 (approx. Rs 8.56 lac)
• Firms will undergo mandatory audits and implement technical safeguards to combat cyber threats and ensure data integrity

Despite these strict measures, cryptocurrency trading and holding remain legal in Singapore. However, digital assets are still not recognised as legal tender, and the government has consistently maintained a cautious stance.

In an interesting development earlier this year, Sony Electronics began accepting USDC stablecoin payments from customers in Singapore, reflecting a slow yet visible integration of digital currencies into mainstream commerce.

Public sentiment appears to back the move, with MAS noting broad support for its regulatory tightening, underlining the public’s call for responsible innovation in the Web3 and digital finance arena.

Cross-border cooperation remains robust, as evidenced by the 2023 Memorandum of Understanding (MoU) between the Blockchain Association Singapore (BAS) and India’s Bharat Web3 Association (BWA) to promote the secure development of decentralized technologies.

As the June 30 deadline nears, Singapore’s firm stance serves as a powerful message to the global crypto community — innovation will be welcomed, but only with regulation at its core.