The Monetary Authority of Singapore has clarified the scope of its Digital Token Service Providers (DTSPs) regime under the Financial Services and Markets Act 2022, following its earlier response to consultation feedback. From 30 June 2025, DTSPs that provide services solely to customers outside Singapore in relation to digital payment tokens and tokens of capital market products will need to be licensed, and those without a licence will have to cease the regulated activity. MAS said it has set a high bar for licensing and will generally not issue a licence for these outbound-only business models, citing higher money laundering risks and limits on effective supervision where substantive regulated activity is outside Singapore. Providers serving customers in Singapore are already regulated under the Payment Services Act 2019, the Securities and Futures Act 2001 or the Financial Advisers Act 2001, with no change to what licensed providers can do, and such providers may also serve customers outside Singapore. Services relating to other tokens, such as utility and governance tokens, are not subject to licensing under the new regime. For transition, existing DTSPs serving only customers outside Singapore will be required to stop the activity when the regime takes effect on 30 June 2025. MAS noted it has consistently communicated this policy position since 14 February 2022 and in subsequent publications, and has reached out to potentially affected parties to discuss orderly wind-down plans, with only a very small number identified based on available information.

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