Digital token firms serving foreign clients must obtain a license: MAS

Without a license, they will need to cease operations by 30 June.

The Monetary Authority of Singapore (MAS) clarified that even digital token service providers (DTSPs) providing services to customers outside Singapore are required to be licensed.

Singapore’s regulator said in a statement that money laundering risks are higher in such business models.

“If their substantive regulative activity is outside of Singapore, MAS is unable to effectively supervise such persons,” MAS said.

Existing DTSPs in the city who serve only overseas customers, and who do not have a license from MAS, will be required to cease activity by 30 June 2025.

MAS said that they are aware of “a very small number” of affected providers.

MAS said that it has consistently communicated its position for a few years since the first response to public consultation issued in February 2022.

Providers of services in relation to other tokens, such as those only used as utility and governance tokens, are not subject to licensing and regulation under the new regime, MAS clarified.