The Monetary Authority of Singapore (MAS) has eased the Digital Token Service Provider (DTSPs) regime, following widespread panic in the industry due to a potential ban on crypto companies serving clients abroad
On a June 6 announcementMore reitated beginning of June 30, crypto companies “that provide services only to customers outside Singapore in connection with digital payment tokens and tokens of market capital products need to be licensed.”
However, the regulator warned that such licenses would only be given to “extremely limited circumstances.”
“Mas has set the bar high for licensing and generally does not issue a license,” the agency said, citing difficulty in supervising companies overseas and money losses risks as major concerns.
Inexplicable administration of such people, “the regulator added. As such, businesses that do not obtain licenses” need to stop their regulated activities. “
Related: UK FCA recommends lifting a ban on crypto etn for retail investors
The start of a crypto exodo?
The crypto market noticed when The MAS has set a deadline of June 30 For local crypto service providers to stop offering digital tokens services in overseas markets earlier this month.
New rules have been triggered by a move. Serving in India but Singapore -based Crypto Exchange Wazirx has announced that it will be Moving its operations to PanamaShortly after the deadline announced more.
At the time of the announcement of the deadline, Hagen Rooke, a partner in Gibson, Dunn & Crutcher, said the licenses would only be released in rare cases. In a LinkedIn post, he Nakasa said:
“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).”
Related: Europe is preparing to fix the defi in 2026 while Mica leaves sector in limbo
Singapore controls crypto controls
Recent moves of Singapore regulators have suggested that local authorities aim to maintain more strict control of the local crypto industry. Today’s announcement has made it clear that crypto companies serving customers in Singapore “are already under regulation,” so the policies have expanded to those who serve abroad customers. However, Mas said that not all services associated with the crypto are affected:
“Service providers related to other tokens, such as those used only as utility and management tokens, are not subject to licensing or regulations under the new regime, and therefore are not affected.”
Following Singapore’s regulation may be reported that digital ownership is popular in the country. Crypto awareness in Singapore reaches a high time, with 94% of respondents in a recent survey that indicates familiarity with at least one digital asset.
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