The Singapore central bank on Friday ordered all domestic crypto service providers without a Digital Token Service Provider (DTSP) license to halt overseas operations by June 30.
The directive comes as part of Singapore’s broader effort to tighten regulatory oversight and protect its growing pool of retail crypto users.
According to the Monetary Authority of Singapore, only DTSP license applicants that have received formal approval under the Payment Services Act are permitted to serve overseas clients.
Entities that have not obtained such approvals must cease these activities entirely.
Singapore Warns Against Overseas Workarounds by Unlicensed Firms
In its official response to industry feedback, MAS said that cross-border services offered without regulatory clearance could expose users to unfair practices and raise the risk of financial misconduct.
It rejected calls for a phased transition, noting that firms have been aware of these requirements since the consultation process began and should already be in position to comply. MAS added that its approach balances consumer protection with the aim of fostering a safe digital asset ecosystem.
MAS also clarified that the prohibition applies regardless of whether overseas services are provided directly or through intermediaries. It warned that attempts to circumvent the rules by relocating parts of operations abroad while continuing to manage them from Singapore would be considered non-compliant.
Singapore Sees Uptick in Digital Asset Use While Tightening Rules
To reinforce accountability, MAS stated it will actively monitor and investigate suspicious setups that appear designed to bypass licensing.
This regulatory crackdown unfolds as more Singaporeans embrace digital assets. A Straits Times report published in April found that 26% of Singaporeans owned digital assets in 2024, up from 24.4% the year before. Adoption is highest among younger generations, with nearly 40% of Gen Z and millennials holding cryptocurrencies.
Among crypto holders, 52% have used digital tokens for payments, and 67% plan to do so in future.
The most common uses include online shopping, bill payments and in-store purchases. Older users tend to favor peer-to-peer transfers to friends and family, particularly across borders.
Despite increasing usage, concerns remain. More than 60% of respondents in the survey said crypto is still too complex to use, while 54% cited limited merchant acceptance as a major barrier.
Even so, crypto transaction volumes are on the rise, placing Singapore at the center of Asia’s regulated digital finance push.
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