Monetary Authority of Singapore Crypto Oversight: What You Need to Know in 2025

On June 30, 2025, Singapore’s crypto industry changed forever. The Monetary Authority of Singapore (MAS) stopped issuing new licenses for digital token service providers - and made it clear they won’t issue more unless absolutely necessary. This wasn’t a slow policy shift. It was a hard stop. No grace period. No extensions. If your company wasn’t fully compliant by that date, you’re no longer allowed to operate from Singapore - even if your customers are in Brazil, Nigeria, or Canada.

Why MAS Changed Course

Singapore used to be one of the most welcoming places in the world for crypto companies. Low taxes, strong infrastructure, and a reputation for clean financial regulation drew firms from around the globe. But MAS noticed something troubling: companies were registering in Singapore not to serve local customers, but to use the country’s name as a stamp of legitimacy. They’d set up a small office, hire one compliance officer, and then run their entire business from overseas - often with weak or no AML controls.

MAS called this regulatory arbitrage. It wasn’t just unfair. It was dangerous. If a Singapore-registered crypto firm got caught laundering money or funding terrorism, the whole country’s financial reputation would take a hit. So MAS decided to protect its name - even if it meant killing its own crypto boom.

The New Rules: DTSP License Requirements

Under the Financial Services and Markets Act 2022 (FSMA), any company offering crypto services - exchanges, wallet providers, trading platforms - must now hold a Digital Token Service Provider (DTSP) license. But here’s the catch: MAS says they’ll only grant these licenses in extremely limited circumstances.

To even qualify, you need:

• A minimum capital reserve of SGD 5 million (about USD 3.7 million)
• A full-time, Singapore-based compliance officer with proven AML/CFT experience
• Annual independent audits by a MAS-approved firm
• Full implementation of the Travel Rule for all transactions over SGD 1,500
• Robust cybersecurity systems meeting MAS’s technical standards
• Customer suitability assessments and clear risk disclosures

The Travel Rule isn’t optional. If you send or receive more than SGD 1,500 in crypto, you must collect and share the sender’s and receiver’s full name, ID number, and account details. That means integrating with specialized software - and the cost? Between SGD 50,000 and SGD 200,000 depending on your volume.

Consumer Protections: No More Credit Card Crypto Buys

MAS doesn’t just care about banks and regulators. They care about everyday users. In September 2024, they banned crypto purchases using credit cards. Why? Because people were racking up debt on risky assets without understanding the risks.

Platforms must now:

• Ask customers if they understand crypto’s volatility
• Assess whether the product fits their financial situation
• Display clear warnings about potential losses

This isn’t just paperwork. It means building real-time risk assessment tools - something most small crypto firms don’t have the budget or team to develop.

Extraterritorial Power: Even If You’re Not in Singapore

Section 137 of the FSMA gives MAS power no other regulator has. If you’re a Singapore-incorporated company - even if your servers are in Dubai, your customers are in the U.S., and your team works remotely - MAS still controls you. You can’t avoid the rules by moving your operations overseas. The law follows the company’s legal home, not its physical location.

This has forced many international firms to either:

• Shut down their Singapore entity entirely
• Build a full local team with a physical office and qualified compliance staff
• Reincorporate in another jurisdiction like Switzerland or the UAE

Penalties Are Severe - No Second Chances

MAS doesn’t warn. They don’t negotiate. If you’re caught operating without a license after June 30, 2025:

• You face fines up to SGD 200,000 (USD 147,000)
• Executives can be jailed
• Your business must shut down immediately

There’s no grace period. No “first offense” exception. One violation = total shutdown.

The Human Cost: Jobs, Salaries, and Brain Drain

The cost of compliance isn’t just technical - it’s human.

A qualified Singapore-based compliance officer now earns between SGD 150,000 and SGD 250,000 a year. That’s more than most startups can afford. Many firms had to lay off staff or cancel expansion plans. LinkedIn data shows crypto-related job postings in Singapore dropped 37% in Q1 2025 compared to Q4 2024.

Some firms tried to hire offshore compliance staff - but MAS requires the officer to be physically based in Singapore. That means relocating someone, paying for housing, visas, and local taxes. For a small firm, that’s a dealbreaker.

Who’s Left? Only the Elite

Before June 2025, around 200 firms had applied for or held provisional DTSP licenses. Now, experts estimate only 15 to 20 will remain fully compliant. These aren’t random startups. They’re well-funded firms with deep pockets - like traditional finance players moving into crypto, or global exchanges with existing compliance infrastructure.

Smaller players? They’re gone. Or they’ve moved to places like Switzerland, Dubai, or Malta, where licensing is still active and the rules are clearer.

How This Compares to the Rest of the World

Singapore’s approach is extreme - even by global standards.

- Switzerland: Offers clear licensing paths. Firms can operate with reasonable oversight and no hard cap on licenses. Many crypto startups still choose Zurich.

- United Arab Emirates: Abu Dhabi and Dubai actively court crypto firms with tax breaks and fast-track licensing. They’re growing their crypto hubs fast.

- United States: Patchwork regulation, but no outright ban on new licenses. Firms can operate under state-level rules.

Singapore chose to prioritize reputation over growth. They didn’t want to be the next Cyprus or Panama - a place known for shady crypto activity disguised as legitimacy. But in doing so, they’ve also shut the door on innovation.

What’s Next for MAS?

MAS hasn’t said they’re done. In May 2025, they hinted at new guidance coming for DeFi protocols and stablecoins by late 2025. Stablecoins are already under strict rules - they must be fully backed and audited to ensure they don’t lose value.

Expect more rules on:

• Decentralized exchanges
• Stablecoin issuers
• Tokenized assets like real estate or bonds

But the message is clear: if you’re not already a top-tier firm with global compliance systems, don’t bother trying to enter Singapore’s crypto market.

Final Reality Check

Singapore’s crypto scene isn’t dead. It’s been winnowed down to a handful of elite players. The country still has world-class banking, legal systems, and tech talent. But if you’re a startup founder looking to launch a crypto exchange or wallet, Singapore is no longer the place.

The MAS crypto oversight framework isn’t about stopping bad actors. It’s about making sure only the most responsible, well-resourced firms get to play. And for everyone else? The door is closed.

For those still operating in Singapore: make sure your compliance officer is local, your Travel Rule system is live, and your audits are up to date. One missed step could mean losing everything.