MAS announces new regulations for digital Token: From 2025, overseas service providers must obtain a license.

On June 6, it was reported that the Monetary Authority of Singapore (MAS) today clarified the scope of application of the digital token service provider (DTSPs) system. From 30 June 2025, DTSPs that only provide services related to digital payment tokens and capital market product tokens for customers outside of Singapore will need to be licensed. MAS licenses are issued to a high standard, such businesses have a high risk of money laundering, and the main regulated activities are outside Singapore, so it is difficult for MAS to be effectively regulated, and those who are not licensed will cease to be regulated. Providers of services to Singaporean customers are regulated, have the same business scope, and can also provide services to overseas customers. Other service providers, such as utility tokens and governance tokens, will not be affected by the new regime. In view of the high risk, existing DTSPs that only serve overseas customers will need to cease such activities when the regime comes into effect. MAS has been communicating its position since February 2022 and communicating with those likely to be affected, with a very small number of such providers.