Monetary Authority of Singapore Crypto Oversight: What You Need to Know in 2025
David Wallace 21 November 2025 24

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Singapore’s Crypto Rules Just Got Much Harder

If you thought Singapore was still a crypto-friendly hub, think again. As of June 30, 2025, the Monetary Authority of Singapore (MAS) stopped issuing new licenses for digital token service providers - almost entirely. There’s no grace period. No extensions. No loopholes. If your company is operating from Singapore and handling crypto, you either met the strict new rules by the deadline or you’re shut down.

This isn’t a tweak. It’s a full reset. MAS didn’t just raise the bar - it moved the entire track. What used to be one of Asia’s most open crypto markets is now one of the world’s most restrictive. And the reason isn’t about stifling innovation. It’s about protecting Singapore’s reputation as a global financial center.

Why MAS Changed Course

For years, Singapore attracted crypto firms with its clear rules and business-friendly environment. But many of those firms weren’t serving local customers. They were using Singapore’s clean regulatory image to gain trust - then operating mostly offshore, often in countries with little oversight. MAS called this “regulatory arbitrage.” In plain terms: they were borrowing Singapore’s credibility to do risky things elsewhere.

By 2025, MAS had enough. The Financial Services and Markets Act 2022 (FSMA) gave them the legal power to go after any company operating from Singapore, no matter where its users were. Section 137 of the law means if your team is in Singapore, your servers are in Singapore, or your CEO lives here - you’re under MAS control. Even if you only serve clients in Nigeria, Brazil, or Ukraine.

The message was clear: Singapore won’t be a backdoor for crypto firms to hide behind its name.

The New Rules: What You Must Do

If you’re still trying to operate under MAS oversight, here’s what you need to have in place - and it’s not optional:

  • Minimum capital: You need at least SGD 1 million in liquid assets. This isn’t a suggestion - it’s a hard requirement to prove you can absorb losses.
  • Local compliance officer: You must hire a full-time compliance officer based in Singapore. This person can’t be remote. They must be physically present, qualified, and accountable. Salaries for these roles now range from SGD 150,000 to SGD 250,000 a year.
  • Annual independent audit: Every year, a third-party auditor must review your AML/CFT controls. MAS doesn’t accept internal reports.
  • Travel Rule compliance: For every crypto transaction over SGD 1,500 (about USD 1,100), you must collect and send the sender’s and receiver’s full name, ID number, and account details. This requires expensive software integration - costs can hit SGD 200,000 for high-volume platforms.
  • Cybersecurity standards: You must meet MAS’s specific framework for data protection, access controls, and incident response. No vague “we use encryption” claims. You need documented policies and tested systems.

And if you’re offering crypto to retail customers? You can’t let them buy with credit cards. You must assess whether each customer understands the risks. You must warn them clearly - in writing - that they could lose everything. These consumer rules were updated in September 2024 and are now fully enforced.

What Happens If You Don’t Comply

There’s no warning. No first-time offense. If you’re caught operating without a DTSP license after June 30, 2025, MAS doesn’t negotiate.

  • Fines up to SGD 200,000 (USD 147,000)
  • Potential jail time for directors and key personnel
  • Immediate shutdown of operations
  • Public naming and shaming on MAS’s website

There’s no grace period. No appeals process. No “we’re working on it.” The deadline was absolute. Firms that didn’t have their Singapore-based compliance officer hired, their Travel Rule system installed, and their audit scheduled by June 30 are already illegal.

Compliance officer monitoring crypto regulations in a high-tech control room.

Who’s Still Operating?

Only a handful of firms made it through. Industry analysts estimate that out of roughly 200 companies that had provisional licenses or applied before the deadline, only 15 to 20 will remain fully compliant. These aren’t startups. They’re well-funded firms with global operations, deep compliance teams, and serious legal budgets.

Most of the companies that shut down were smaller exchanges, DeFi platforms, and crypto payment processors that thought they could fly under the radar. Now they’re gone. Some relocated to Dubai or Switzerland. Others closed entirely.

LinkedIn data shows crypto job postings in Singapore dropped 37% in Q1 2025 compared to the last quarter of 2024. The talent is leaving. The money is moving. And MAS is okay with that.

How This Compares to the Rest of the World

Compared to other financial hubs, Singapore’s approach is extreme.

Comparison of Crypto Regulatory Approaches (2025)
Region Licensing Status Travel Rule Enforcement Consumer Protections Capital Requirements
Singapore (MAS) Effectively banned new licenses Yes, SGD 1,500 threshold Strict: suitability checks, no credit cards SGD 1 million minimum
United Arab Emirates (ADGM) Active licensing program Yes, USD 1,000 threshold Moderate: risk disclosures required USD 500,000 minimum
Switzerland (FINMA) Open licensing Yes, CHF 1,000 threshold Basic: no credit card ban CHF 500,000 minimum
United States (State-by-State) Varies by state Yes, USD 3,000 threshold Some states ban credit cards Varies: $100,000-$1 million

Singapore now has the highest capital requirement and the strictest consumer rules. It’s the only major jurisdiction that’s effectively closed the door to new entrants. Other places want crypto businesses. MAS wants only the most bulletproof ones - and even then, only if they’re truly committed to Singapore.

The Hidden Cost: Compliance Overload

It’s not just about money. It’s about time and complexity.

Implementing Travel Rule compliance means integrating with third-party software like Notabene or Sygna. That’s not plug-and-play. It requires legal review, technical testing, and staff training. For small firms, this takes 6-9 months. MAS gave them 4 weeks.

Deloitte’s May 2025 analysis found that firms complying with MAS rules saw their operational costs jump 25-40% - mostly from hiring local staff, legal fees, and software. Many firms that could afford the initial license fee couldn’t afford the ongoing burden.

And it’s not over. MAS has hinted at new rules for DeFi protocols and stablecoins later in 2025. If you’re still in, you’re not done. You’re just on the first page of a long, expensive book.

Fortified crypto firm receives compliance certification while rivals shut down.

What’s Next for Singapore?

MAS isn’t trying to kill crypto. It’s trying to clean it up. The goal is simple: make sure Singapore’s name isn’t tied to fraud, money laundering, or scams.

But there’s a trade-off. By pushing out almost all new entrants, Singapore risks losing its role as a global crypto innovation center. Experts like Dr. Jane Lim from the Asian Fintech Institute warn this could permanently shrink Singapore’s influence in digital finance.

MAS officials say they’d rather have 10 strong, fully compliant firms than 200 shaky ones. And they’re willing to live with the fallout.

For now, Singapore’s crypto scene is quieter. Smaller. More controlled. And far less welcoming to newcomers. If you’re looking to start a crypto business in Asia, you’ll find easier paths elsewhere. But if you want to operate with absolute regulatory certainty - and you can afford it - Singapore still offers the most trusted legal environment in the world.

Frequently Asked Questions

Can I still trade crypto in Singapore as a retail investor?

Yes. The MAS rules apply to service providers - not individual users. You can still buy and hold crypto through platforms that are licensed under MAS. But you can’t use a credit card to buy it. You must pass a risk assessment, and the platform must clearly explain the risks to you before you trade.

What if my crypto company is registered in Singapore but serves only overseas clients?

You still need a DTSP license. Section 137 of the FSMA gives MAS authority over any company operating from Singapore, regardless of where its customers are. If your team, servers, or management are based in Singapore, you’re under MAS jurisdiction. No exceptions.

Is there any way to get a DTSP license after June 30, 2025?

Technically, yes - but only in “extremely limited circumstances.” MAS has said it will generally not issue new licenses. If you’re a well-established firm with elite compliance systems, a strong operational reason to be in Singapore, and can prove you won’t be used for regulatory arbitrage, you might get a review. But don’t expect it. The door is effectively closed.

What happens to existing license holders?

They must reapply under the new rules by the deadline. Those who met all requirements - capital, compliance officer, audits, Travel Rule - are still licensed. But they’re under constant surveillance. MAS conducts unannounced inspections and can revoke licenses at any time for non-compliance.

Are stablecoins regulated differently?

Yes. Stablecoins issued or managed in Singapore must meet a separate framework introduced in November 2023. They must be fully backed by high-quality assets, with daily audits and strict redemption rules. Only stablecoins that meet these standards can be offered to Singapore residents. MAS is expected to expand these rules to cover DeFi-based stablecoins later in 2025.

Final Take

Singapore didn’t ban crypto. It banned sloppy crypto. The cost of doing business here just went way up. The barrier to entry? Now it’s not just about having a good idea or raising capital. It’s about having a full legal team, a local compliance officer on payroll, millions in reserves, and a system that can track every single transaction over $1,100.

If you’re a small player, you’re out. If you’re a global firm with deep pockets and a real commitment to compliance, you might still be in. But you’re no longer welcome because you’re trendy. You’re welcome because you’re bulletproof.

That’s the new Singapore. And it’s not coming back.