Monetary Authority of Singapore Crypto Oversight: What You Need to Know in 2025

Back in 2022, Singapore was seen as one of the friendliest places in the world for crypto companies. Now, it’s one of the toughest. The Monetary Authority of Singapore (MAS) didn’t just tighten the rules - it rewrote them. By June 30, 2025, any company offering crypto services from Singapore had to meet a new, brutal standard. If you didn’t, you were shut down. No warnings. No extensions. No exceptions.

Why MAS Changed Everything

MAS didn’t wake up one day and decide to crush the crypto industry. It saw a pattern. Companies were registering in Singapore not because they wanted to serve local customers, but because Singapore’s name carried weight. They’d get a license, use it to look legit, then run their business from overseas - often serving clients in countries with little to no oversight. This wasn’t innovation. It was reputation laundering.

In a June 2025 statement, MAS made it clear: they wouldn’t tolerate being used as a fig leaf for risky operations. Their priority isn’t growth. It’s trust. Singapore’s global reputation as a stable, clean financial center is more valuable than any number of crypto startups.

The DTSP License: Only for the Elite

The new rule is called the Digital Token Service Provider (DTSP) license, created under the Financial Services and Markets Act 2022 (FSMA). Sounds simple, right? It’s not. To get one, you need:

• A minimum capital reserve of SGD 1 million (about USD 740,000)
• A full-time, Singapore-based compliance officer - not a contractor, not a remote employee. Someone physically in Singapore, with real experience in AML/CFT
• Annual audits by an independent firm approved by MAS
• Full compliance with the Travel Rule: collect and share names, ID numbers, and account details for every transaction over SGD 1,500
• Advanced cybersecurity systems that meet MAS’s strict standards

And here’s the kicker: MAS says it will issue licenses only in “extremely limited circumstances.” Translation: almost no one qualifies. By June 2025, out of roughly 200 firms that had applied or held provisional licenses, only 15 to 20 were expected to make the cut. The rest? They either shut down or moved their operations elsewhere.

Extra-Territorial Power: You Can’t Hide

Section 137 of the FSMA is what makes this regulation terrifying for crypto firms. It doesn’t matter where your users are. Doesn’t matter where your servers are. If your company is registered in Singapore - even if you’re just a shell with a PO box - MAS has legal authority over you. You’re subject to their rules, no matter where you operate.

This isn’t just about local businesses. It’s about global firms that set up Singapore entities to gain credibility. Now, those companies have to comply with Singapore’s rules, even if they’re serving clients in Nigeria, Brazil, or Russia. There’s no loophole. No gray area.

Consumer Protection: No More Risky Moves

MAS also cracked down on how crypto platforms treat customers. Starting in September 2024, they introduced strict consumer rules:

• You can’t let customers buy crypto with credit cards
• You must assess whether a customer understands the risks - not just check a box
• You must clearly warn them that crypto prices can crash overnight

These aren’t suggestions. They’re legal requirements. Platforms that ignore them risk fines, jail time, or both.

The Travel Rule: A Technical Nightmare

The Travel Rule isn’t new in crypto. But MAS made it harder than most. You need to collect and transmit:

• Full legal names
• Government-issued ID numbers
• Account or wallet addresses
• Transaction details for every transfer over SGD 1,500

This requires integrating with specialized software. Companies report spending between SGD 50,000 and SGD 200,000 just to get compliant. Smaller firms can’t afford it. Even bigger ones struggle with the complexity of matching data across different jurisdictions.

Penalties Are Brutal

Violating MAS rules doesn’t mean a warning letter. It means:

• Fines up to SGD 200,000 (USD 147,000)
• Up to two years in prison for executives
• Immediate shutdown of operations

There’s no grace period. No appeals process. If you miss the June 30, 2025 deadline, you’re done. No second chances.

The Human Cost

This isn’t just about companies. It’s about people.

The requirement for a Singapore-based compliance officer has created a massive talent shortage. Salaries for qualified officers have jumped to between SGD 150,000 and SGD 250,000 per year. Many firms can’t find anyone who meets MAS’s standards - and those who do are being poached by the few who made it through.

LinkedIn data shows crypto-related job postings in Singapore dropped 37% in Q1 2025 compared to Q4 2024. Young professionals who built careers in crypto are now looking for jobs in finance, tech, or overseas.

How This Compares to the Rest of the World

While Singapore is shutting the door, other places are opening theirs:

• Switzerland offers clear licensing and low barriers for crypto firms
• The UAE’s Dubai Virtual Assets Regulatory Authority (VARA) actively recruits global platforms
• Japan and South Korea have structured but workable frameworks

Singapore’s approach is the opposite: high barriers, low tolerance. It’s not about being fair. It’s about being safe. And for MAS, safety means fewer players - but the ones left must be flawless.

What’s Next?

MAS hasn’t said it’s done. In May 2025, they hinted at new rules for DeFi protocols and stablecoins later in 2025. Stablecoins, in particular, are under close watch. MAS wants them to be “highly stable” - meaning they’ll likely require full backing in cash or low-risk assets.

Industry experts are divided. Some say Singapore’s move will permanently damage its role in global crypto. Others believe it’s the right call - that a clean, small, regulated market is better than a noisy, risky one.

One thing’s certain: if you’re thinking of launching a crypto business in Singapore, you’re too late. The window closed on June 30, 2025. The only ones left are the ones who paid the price - and even they aren’t guaranteed to survive.

Is There Any Way Around It?

No. Not really.

Some firms tried to operate without a license, claiming they weren’t “based” in Singapore. MAS responded by tracking directors, bank accounts, and even email servers. If any part of your operation - even one person - is physically in Singapore, you’re covered by their rules.

There’s no offshore workaround. No shell company trick. MAS has the legal power, the resources, and the political will to enforce this. The only safe path was to comply - and most didn’t make it.