Regulatory Updates for Digital Token Service Providers
The Monetary Authority of Singapore (MAS) has revealed significant updates regarding the regulatory framework for Digital Token Service Providers (DTSPs). As of June 30, 2025, any DTSP focused solely on offering digital payment tokens or capital market product token services to international clients will be required to obtain a license. However, the MAS has indicated that the standards for these licenses will be stringent, leading to the expectation that few, if any, licenses will actually be granted.
Current Regulations and Exemptions
Notably, those DTSPs already operating in Singapore and providing services to local clients are already under current regulations, and they remain authorized to extend their services to clients abroad. In contrast, firms that deal exclusively in utility and governance tokens will not be captured by this new regulatory framework.
Impact on Cryptocurrency Exchanges
On June 12, in a related move, Singapore’s regulatory authorities issued a final caution to significant cryptocurrency exchanges that have been functioning without a local license, demanding their immediate cessation of operations.
Future of the Cryptocurrency Market
These regulatory changes raise questions about the future landscape of the cryptocurrency market in Singapore.
BlockBeats recently explored this in detail with a panel discussion titled “The End of Web3 Paradise? How Will Singapore’s DTSP Act Affect the Ecosystem?”
This discussion is available for public access, providing insights into the potential implications of these regulations for the industry.
