The Monetary Authority of Singapore ( MAS ) has formalized its regulatory stance on digital token service providers ( DTSPs ), tightening its oversight framework under the Financial Services and Markets Act 2022.

Effective June 30, DTSPs offering services solely to overseas clients involving digital payment tokens or capital markets token products must obtain a licence from the MAS or cease operations entirely.

The MAS has stated that it will generally not grant licences to firms that do not have substantive regulated activity within Singapore, citing limitations in extraterritorial supervision, and that this move addresses elevated money laundering risks associated with cross-border digital token activities.

The announcement comes as part of the MAS’ May 30 response to industry feedback on its proposed DTSP regulatory framework. The position, first articulated in February 2022 and reaffirmed in updates through October 2024 and May 2025 signals, the authority says, its commitment to maintaining robust anti-money laundering ( AML ) safeguards, even for offshore-facing business models.

For DTSPs serving customers within Singapore, the regulatory environment remains unchanged. These entities continue to be governed under existing laws, such as the Payment Services Act, Securities and Futures Act, and Financial Advisers Act.

The clarified regime does not apply to token services involving utility or governance tokens, which fall outside the purview of current licensing requirements.

The MAS has initiated outreach to potentially affected parties to assist with transition planning, but it estimates that only a small number of entities will be impacted. The regulator reaffirmed that it remains open to dialogue, inviting concerned firms to reach out via its AML/CFT ( countering the financing of terrorism ) division.

As digital asset markets evolve rapidly across Asia, Singapore’s stance underscores the broader trend of regulating offshore crypto activities with a domestic lens on systemic integrity and financial crime risk.