Singapore Sets Deadline For Unlicensed Crypto Firms To Halt Operations

Singapore is boldly moving to tighten control over its fast-growing crypto market. The Monetary Authority of Singapore (MAS) has asked all crypto companies without a Digital Token Service Provider (DTSP) license to stop offering services. The deadline to comply is June 30, 2025. This step is part of the country’s continued efforts to tighten its regulatory oversight. This new directive is also poised to ensure better protection for retail investors in the growing digital asset space. Singapore Moves to Strengthen Crypto Market Oversight According to the MAS, crypto firms that have received in-principle or full approval under the Payment Services Act may continue to offer their services to overseas clients. However, those still waiting for approval must stop such operations immediately. This decision aims to close regulatory gaps that can expose users to risks such as fraud, unfair practices, and financial misconduct. MAS emphasized that it had previously engaged with industry players during earlier consultations. This means companies have long been aware of the licensing requirements. As a result, the regulator dismissed calls for a phased transition period. All firms must fully comply by the June 30, 2025, deadline. MAS Says No Tolerance for Workarounds MAS clarified that it will not allow companies to avoid the rules by relocating parts of their operations abroad while continuing to manage them from Singapore. Whether services are offered directly or through intermediaries, any attempt to bypass the requirement will be treated as non-compliant. The regulator also said it would closely monitor such activities and take necessary action against firms trying to sidestep licensing requirements. This includes stricter checks and holding firms accountable for overseas operations that do not follow regulations. This rule is part of Singapore’s balancing of innovation and user protection efforts. The agency said it supports the growth of digital assets. However, consumers’ safety comes first. By allowing only licensed companies to operate in the country’s crypto market, the MAS aims to prevent crypto scams , unfair practices, and financial crimes. Crypto Use on the Rise in Singapore The crackdown comes when digital asset use is becoming more common in Singapore due to clear rules for digital finance . A recent report revealed that 26% of Singaporeans owned crypto in 2024, up from 24.4% in 2023. Younger people, especially Gen Z and millennials, are leading the way. About 40% of them now hold crypto. Among all crypto users in the country, 52% have used digital tokens to make payments. Reportedly, even more, 67%, plan to do so. In May, Franklin Templeton got approval from MAS to launch a tokenized money market fund for regular investors in Singapore. This shows the government is embracing blockchain in traditional finance. The post Singapore Sets Deadline For Unlicensed Crypto Firms To Halt Operations appeared first on TheCoinrise.com .

Source: The Coin Rise