New regulatory requirements mandate that crypto firms in Singapore obtain DTSP licenses to engage in international operations.
Requirements for Singapore Crypto Firms
Starting June 30, 2025, crypto firms operating in Singapore and serving overseas clients must secure DTSP licenses or cease cross-border operations. This decision aligns with Singapore's initiative for stronger oversight of crypto activities.
Preparing for DTSP License Acquisition
Registered firms should start preparations for obtaining the license. Key steps include:
1. Reviewing current cross-border service offerings. 2. Submitting DTSP license applications well ahead of the deadline. 3. Adjusting operations to block international access until licensed.
Impact on the Crypto Industry
Additionally, crypto firms must:
- Implement enhanced client due diligence, - Strengthen anti-money laundering and counter-terrorism financing systems, - Upgrade reporting mechanisms, - Educate staff on cross-border risk compliance.
With the introduction of these new regulations, Singapore crypto firms face significant challenges in acquiring licenses, which could fundamentally alter the industry landscape.
