Singapore Orders Unlicensed Crypto Firms to Halt Services

• MAS mentioned that its approach helps in balancing consumer protection with the focus of fostering a protected digital asset ecosystem.
• This regulatory suppression is a part of embracing digital assets by Singaporean authorities. 

The Central Bank of Singapore has ordered the crypto service providers of the nation that do not hold a Digital Token Service Provider (DTSP) license to hold overseas operations by June 30. 

This measure is taken to tighten regulatory oversight and safeguard its increasing pool of retail crypto users of the nation. As per the Monetary Authority of Singapore, the DTSP license applicants who have received official approval under the Payment Services Act can serve overseas clients. 

And those who haven’t received the approvals yet must hold these activities immediately. MAS also mentioned that cross-border services served without regulatory clearance could lead users to unfair practices and lead to financial misconduct. 

It denied calls for a phased change, highlighting that companies have been aware of these needs since the consultation process started and should so far in the steps to comply.

Crypto Adoption Significantly Increasing 

MAS mentioned that its approach helps in balancing consumer protection with the focus of fostering a protected digital asset ecosystem. Not only this, the body also clarified that the ban applies despite whether overseas services are offered directly or through intermediaries. 

It was noted that trials to avoid the rules by relocating parts of operations abroad while continuing to handle them from Singapore would be considered non-compliant. To strengthen accountability, MAS clarified that it will oversee and scrutinize suspicious steps that seem designed to bypass licensing. 

This regulatory suppression is a part of embracing digital assets by Singaporean authorities. In April, a report was published in the Straits Times that revealed that around 26% of the residents of Singapore owned digital assets last year, up from 24.4% in 2023. 

Younger generations are actively adopting digital assets, with around 40% of Gen Z and millennials holding crypto. Among the holders, around 52% have used digital tokens for payments, and 67% plan to do it in the future. 

The most frequent users use it for online shopping, bill payments, and in-store purchases. Older users are inclined toward peer-to-peer transfers to friends and family, mainly across borders. 

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