The Monetary Authority of Singapore (MAS) has issued a clarification regarding the scope and application of its upcoming regulatory regime for Digital Token Service Providers (DTSPs), which will take effect on 30 June 2025. This follows MAS’ 30 May 2025 publication of its response to feedback on its earlier consultation paper outlining the proposed regulatory approach under the Financial Services and Markets Act 2022.
Key Clarifications on Scope of Regulation
MAS emphasised that from 30 June 2025, DTSPs that provide services solely to customers outside of Singapore in relation to digital payment tokens and tokens constituting capital market products will be required to obtain a licence. However, the regulator stated that such licences will generally not be granted due to the heightened money laundering risks and the lack of supervisory oversight for activities conducted entirely outside of Singapore. DTSPs that do not obtain a licence must cease all regulated activities under the new regime.
By contrast, DTSPs that serve customers in Singapore are already subject to existing regulations. These providers may also continue to serve overseas customers, with no changes to their current licensing status.
MAS further clarified that services related to tokens used strictly for utility or governance purposes will not fall under the new licensing regime, and are therefore unaffected by the changes.
Transition Period and Enforcement
MAS reiterated that DTSPs serving only overseas customers must stop these activities once the regime comes into effect on 30 June 2025. This policy stance has been consistently communicated since MAS’ initial response to consultation feedback on 14 February 2022, and reiterated in subsequent publications on 4 October 2024 and 30 May 2025.
The regulator confirmed that it had proactively engaged with a small number of potentially affected providers to discuss an orderly wind-down of their operations. Affected parties are encouraged to contact MAS via email at [email protected].
