MAS – Regulatory Regime for Digital Token Service Providers
The Monetary Authority of Singapore (MAS) has clarified its regulatory stance on Digital Token Service Providers (DTSPs), especially those serving only overseas clients. The clarification reinforces Singapore’s commitment to strong anti-money laundering (AML) and counter-terrorism financing (CFT) standards
Licensing Required for DTSPs Serving Only Foreign Clients
With effect from 30 June 2025, all DTSPs that provide services related to digital payment tokens (DPTs) or capital markets products in the form of digital tokens solely to overseas customers must be licensed under the Financial Services and Markets Act 2022 (FSMA).
MAS highlighted that such service providers pose significant money laundering and terrorism financing risks, particularly when operating outside Singapore. As such, these providers will be subject to a high bar for licensing, and approvals will only be granted on a selective basis for the effective AML/CFT oversight.
No Change for Existing Licensees and Utility & Governance Tokens Not Covered
DTSPs already licensed to serve Singapore customers can continue operating, including serving overseas clients, under their current approvals. MAS also clarified that services involving only utility or governance tokens are not subject to licensing, as these tokens do not fall under the FSMA framework.
Policy Continuity and Industry Engagement
MAS emphasized that this regulatory position is not new, having been consistently communicated since February 2022 and reinforced during the FSMA rollout in October 2024. The latest media release, dated 30 May 2025, serves as a final reminder before the licensing deadline.
MAS has also been in direct contact with affected DTSPs to facilitate a smooth transition and has been actively engaging to ensure an orderly wind-down of operations where necessary.
Upholding Singapore’s Reputation as a Trusted Financial Hub
MAS’s stance highlights its commitment to strong regulatory standards in the digital asset space. By requiring licenses for DTSPs serving only overseas clients, MAS reinforces its zero-tolerance approach to financial crime and extends its supervisory reach. The high licensing bar reflects Singapore’s intent to protect financial integrity while offering clear guidance on the regulatory scope for digital asset services.
