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The Monetary Authority of Singapore (MAS), which is in charge of Singapore’s finances, has made it even more important that cryptocurrency trading platforms have a Digital Token Services Provider (DTSP) license by June 30, 2025, or stop doing business in the city-state.
The Financial Services and Markets Act 2022 says that all crypto companies that don’t have a license must either follow the rules or quit Singapore’s market completely.
Reuters said on June 10, 2025, that corporations that don’t follow the rules might face big fines, amounting to SG$250,000, or up to three years in prison.
The restrictions apply to both centralized crypto exchanges (CEXs) and decentralized finance (DeFi) protocols that do business with Singapore, especially those that do business overseas without the right licenses.
On June 6, a MAS spokeswoman said, “This is a natural extension of our regulatory framework, aimed at ensuring accountability, especially for offshore operations using Singapore’s infrastructure.”
Big Exchanges Are Planning Their Exit
The strict rules have caused several worldwide crypto exchanges who don’t have complete licenses to restructure in Singapore.
Reports say that Bitget and Bybit, two of the world’s top 10 exchanges by trading volume, are getting ready to move their businesses. Reports say that Bitget is looking in places like Dubai and Malta, which have rules that are better for cryptocurrencies. Bybit is also looking into similar options, but neither business has made an official comment.
This happens when Singapore, which used to be a leader in crypto innovation, tightens government control over the industry.
The city-state’s attraction as a regulated hub drew in big names like Coinbase and Crypto.com, which set up regional headquarters there. But the crypto market crisis of 2022, which caused some well-known local businesses to go out of business, made MAS step up its supervision, limit retail speculating, and limit crypto ads.
Jobs and Industries in Danger
The change in rules is having an effect on Singapore’s crypto workers. Arthur Cheong, the founder and CIO of Defiance Capital LLC, said that hundreds of jobs could be lost if exchanges cut back or close down completely. Many companies have relied on staff stationed in Singapore to run their global client operations, but the new laws could mess up these plans.
Chris Holland, a partner at the Singapore-based consulting firm HM Partners, said that crypto companies are asking a lot of questions because they want to figure out what dangers they face. “Our phones keep ringing.” He stated, “Companies that are based in other countries but do a lot of business here are racing to figure out how much risk they are taking.”
Finding your way through the grey area
Singapore’s image as a crypto-friendly place for years drew in blockchain pioneers. But the unclear structures of some offshore exchanges have made it hard for regulators to keep up with the rules for a long time. Grace Chong, Head of Financial Regulatory Practice at Drew & Napier LLC, said that companies that use Singapore-based workers to help with operations in other countries without clear rules have been working in a “legal grey zone.”
MAS has made it clear that its expectations have been clear all along, and the new rules would not affect licensed businesses. Still, the rules have made things unclear for companies with hybrid or decentralized operations. Many of them are having trouble figuring out how the laws will work.
Singapore’s crypto scene is at a crossroads as the June 2025 deadline approaches. The city-state wants to find a balance between protecting investors and encouraging innovation. However, its stricter stance could change its role as a global crypto hub, which could lead enterprises to go to places with less strict rules.
