The Monetary Authority of Singapore (MAS) announced the results of one of its latest consultations that impacts Singapore crypto and stablecoin firms that essentially operate offshore. These businesses may be incorporated in Singapore but must cease operations by the end of the month (30 June 2025) or get a license, which MAS said will only be granted rarely.
The move stems from legislation that splits the licensing of ‘digital token service providers’ into those that provide services in Singapore versus others that target offshore clients. Service providers active in Singapore have to be licensed in accordance with Payment Services Act, whereas those that target offshore clients fall under the Financial Services and Markets Act.
MAS is concerned about the potential reputational impact on Singapore where companies register in Singapore for tax purposes, but don’t actually provide services within Singapore or have a material presence. Money laundering is a key worry, especially if the main operations are outside of Singapore, making it hard for MAS to exercise oversight. This supervision challenge is why MAS will rarely grant licenses to offshore-focused firms – without Singapore touchpoints, effective regulation becomes nearly impossible.
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