Why Is Singapore Telling Crypto Firms to Shut Down Overseas Operations?

Singapore has ordered all locally based digital token service providers (DTSPs) to halt their overseas operations by June 30, 2025, or face severe penalties. It’s not a warning. It’s a deadline.

The Monetary Authority of Singapore (MAS) issued the directive as part of its efforts to enforce a tighter regulatory regime under the Financial Services and Markets Act (FSM Act) of 2022. Under Section 137 of the Financial Services and Markets Act (FSM Act) of 2022, companies that don’t comply could be hit with fines nearing $200,000 and even jail time of up to three years. And no — there will be no grace period, no gentle phasing out, no regulatory shoulder-pats. Just a hard stop.

“DTSPs must suspend or cease carrying on a business of providing DT services outside Singapore by 30 June 2025,” MAS said bluntly.

So… Why the Sudden Crackdown?

This isn’t about posturing. It’s about control — and plugging what MAS sees as a growing loophole: crypto companies setting up shop in Singapore while conducting loosely regulated or even unregulated business abroad.

It’s the classic “regulatory arbitrage” play — and Singapore’s had enough.

MAS has made it clear: if you’re incorporated here, you’re playing by our rules — no matter where your servers, clients, or wallets are.

The trigger? MAS is finalizing its new regime for Digital Token Service Providers (DTSPs) under the FSM Act. And the verdict is clear: overseas operations are a risk. A risk to Anti-Money Laundering (AML) goals. A risk to Counter-Terrorist Financing (CFT) compliance. A risk to Singapore’s global reputation as a trusted financial hub.

And MAS isn’t alone in its thinking. In a LinkedIn post that’s making the rounds, Hagen Rooke, Partner at Gibson, Dunn & Crutcher, warned that licenses under the new regime will be extremely rare. “This type of operating model generally gives rise to regulatory concerns,” he wrote — code for: don’t count on slipping through.

Who’s in the Crosshairs?

Any Singapore-incorporated company, partnership, or even individual providing digital token services abroad. That includes businesses where crypto isn’t even the core offering — if you’re touching tokens overseas, you’re on the hook.

Only firms already licensed or exempted under existing financial laws — like the Securities and Futures Act, Financial Advisers Act, or Payment Services Act — are spared from the guillotine.

The rest? They’ve got 30 days to make a choice:

• Shut down overseas operations,
• Completely restructure to sever Singapore ties,
• Or chase a license they almost certainly won’t get.

Key Takeaway

Singapore is doubling down on being a clean, tightly governed crypto jurisdiction. It’s no longer enough to be locally registered and globally loose. The MAS wants its oversight to reach wherever your crypto business touches.

If that means pushing out firms that can’t meet the bar — so be it. Because in the eyes of Singapore, credibility matters more than hype. And if you’re playing fast and loose across borders? The clock is ticking. June 30 is coming fast.

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