General information only. CryptoRegHub provides summaries for informational purposes and does not constitute legal or compliance advice. Always verify with official sources and consult qualified legal counsel before making compliance decisions.
CryptoRegHub provides plain-English summaries of crypto regulations for informational purposes only. This does not constitute legal, compliance, or financial advice. Regulations change frequently — always verify information with official sources and consult qualified legal counsel before making any compliance decisions.
The Financial Services and Markets Act 2022 (FSMA) Part 9 introduced a licensing regime for Digital Token Service Providers (DTSPs) — entities incorporated or based in Singapore that provide digital token services to customers outside Singapore. This closed a regulatory arbitrage gap where Singapore-incorporated entities could serve global clients without being subject to MAS oversight. The DTSP regime took effect on 30 June 2025, with no grace period. MAS issued a stark warning: it will 'generally not issue a licence' to DTSPs serving only overseas customers, citing the inherent difficulty of regulating offshore token services and the associated AML/CFT risks. This effectively means that most Singapore-incorporated crypto entities serving global markets had to either obtain a PSA licence (serving Singapore customers) or cease cross-border operations by June 30, 2025.
Applies to any entity incorporated or formed in Singapore (including companies, partnerships, and individuals) that carries on a business of providing digital token services to customers outside Singapore. 'Digital token services' covers digital payment tokens (DPTs) and tokens that are capital markets products. Pure utility and governance token providers are exempt. Singapore-based employees of overseas crypto businesses are generally not in scope provided their activities do not themselves constitute provision of DT services.
Key requirements: (1) Obtain a DTSP licence under FSMA Part 9 — or cease providing DT services to overseas customers by June 30, 2025. (2) MAS has stated licences will only be issued in extremely limited circumstances. (3) AML/CFT compliance: full KYC, customer due diligence, suspicious transaction reporting. (4) Technology risk management policies required. (5) Fit-and-proper requirements for key personnel. (6) Ongoing MAS supervision.
Always refer to official sources to confirm current requirements. CryptoRegHub summaries are for general guidance only.
Large fines, licence revocation, or criminal referral risk
This summary is for general informational purposes only and does not constitute legal advice. Always verify with official sources and consult qualified legal counsel.