Monetary Authority of Singapore Clarifies Scope of DTSPs Regime

The Monetary Authority of Singapore (MAS) today clarified the scope of the regime for Digital Token Service Providers (DTSPs). From June 30, 2025, DTSPs that provide services related to digital payment tokens and capital market product tokens only to overseas customers will require a license. The MAS has high licensing standards, and such businesses carry high money laundering risks. Since the main regulated activities occur outside Singapore, the MAS finds it challenging to regulate effectively, and those without a license will cease regulated activities. Providers offering related services to Singapore customers are already regulated, with no change in their business scope, and they can also serve overseas customers. Other providers offering services related to utility tokens and governance tokens are not affected by the new regime. Given the higher risks, existing DTSPs that only serve overseas customers must cease such activities when the regime takes effect. The MAS has consistently communicated its position since February 2022 and has engaged with potentially affected parties, though the number of such providers is very small.