Singapore imposes a June 30th deadline for crypto companies offering overseas services
The central bank of Singapore set a strict June 30th deadline for local crypto service providers to stop offering digital token (DT) services in overseas markets.
The directive came from the Monetary Authority of Singapore’s (More) response to industry feedback on the proposed regulatory framework for the Digital Token Service Provider (DSTPs) under the Financial Services and Markets Act of 2022 (FSM Act).
But Nakasa said With no transitional organizing to be done for local DTSS providing overseas services. It said any company included in Singapore, individual or collaboration that provides DT services outside of Singapore should stop operations or obtain a license when DTSP provisions begin by the end of June.
“DTS subject to a licensing requirement under section 137 of the FSM Act should suspend or stop carrying out a business of providing DT services outside Singapore on June 30, 2025,” Mas wrote.
Violators can face a fine of nearly $ 200,000
Under Section 137 of the FSM Act, Singapore -based businesses are assumed to operate from Singapore and thus subject to licensing. It includes companies whose token -related activities abroad are not their primary business activity.
Companies have found the violation of the laws will be subject to a heavy fine of up to 250,000 Singaporean dollars (nearly $ 200,000) and imprisonment for up to three years.
More said that only companies are licensed or excluded under existing financial laws, such as the Securities and Futures Act, Financial Advisers Act or Payment Services Act, can continue to work without contrary to new policies.
Although DTSPs can get licensed, a lawyer says it is in rare cases. In a Linkedin post, Hagen Rooke, a partner at Gibson, Dunn & Crutcher, Says Licenses will only be released in rare cases, due to increased regulatory concerns around counter-terrorist financing (CFT) and anti-money laundering (AML).
“The more will provide licenses under the new framework only in excessively limited circumstances (as this type of operating model generally provides an increase in regulatory concerns, EG AML/CFT relevant),” Roke wrote.
The lawyer urged companies to consider rapid risk action by adjusting the operation to remove their touchpoints in Singapore.
Related: Singapore prevents access to polymarket with unlicensed gambling concerns
Singapore addresses cross-border risks
The transfer indicates a major tightening of regulation administration in the crypto activity by Singapore authorities. The mandate in DTSPs to stop overseas activities came from regulatory development aimed at addressing risks to the digital asset sector.
In April 2022, Singapore FSM Bill passedproviding greater authority to organize crypto companies that operate outside the country but are based in Singapore.
The law requires DTSS with operations overseas to comply with AML and CFT standards even if they do not offer services within Singapore. Concerns have expressed concerns that crypto companies can take advantage of regulatory gaps by registering in Singapore while conducting irregular activities abroad.
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