The Digital Token Service Provider Act in Singapore comes into force on June 30, 2025, requiring unlicensed platforms to cease operations, which could significantly impact the local and global crypto market.
Implementation of the DTSP Act
The DTSP Act takes effect on June 30, 2025, requiring all unlicensed digital platforms to cease operations. The Monetary Authority of Singapore (MAS) has stated that any entity providing digital token services from Singapore, even to overseas users, must comply. License approvals will be granted in 'extremely limited circumstances'.
Impact on the Crypto Market
The new legislation affects numerous platforms catering to international clients. Market participants must cease operations immediately unless they have secured licensing from the MAS. This shift indicates Singapore's commitment to tighten control over digital assets and may lead to restructuring in DeFi and digital tokens within the region.
Broader Regulatory Implications
The MAS aims to improve regulatory control, replacing the previous volatile regulatory landscape. Companies are expected to adjust their operations to remain compliant, which could lead to decreased on-chain activity and a decline in Total Value Locked (TVL) in Singapore-headquartered projects. Previous enforcement actions suggest firms may relocate to achieve compliance.
The implementation of the Digital Token Service Provider Act in Singapore will have a significant impact on local and international cryptocurrency platforms, potentially altering the dynamics of global digital asset trading.
