The Monetary Authority of Singapore (MAS) has announced new requirements for all local crypto firms without a DTSP license regarding the servicing of overseas clients.
MAS Instructions for Local Crypto Firms
MAS instructed all local crypto firms without a DTSP license to cease serving overseas clients by June 30, 2025. The regulator stated that no transitional period would be allowed, and non-compliance could lead to penalties.
Licensing and DTSP Requirements Proposals
On October 4, 2024, MAS proposed regulatory guidelines for digital token service providers, highlighting the risks of money laundering and terrorism financing. The regulator noted that it would only consider granting a license to firms demonstrating valid reasons for not providing services in Singapore.
Competency Requirements for Company Management
The Singapore regulator set competency requirements for CEOs, directors, and managers of licensed firms. These include having sufficient experience in operating a DTSP business and understanding the regulatory framework for DTSPs.
The new MAS requirements aim to enhance oversight of risks in the cryptocurrency industry and ensure compliance among local digital token service providers.
