Singapore MAS clarifies that the DTSPs system only applies to payment tokens or capital market product tokens

The Monetary Authority of Singapore (MAS) clarified today the scope of application of the Digital Token Service Providers (DTSPs) system. Starting from June 30, 2025, DTSPs that only provide digital payment tokens and capital market product tokens related services to customers outside of Singapore are required to obtain a license. The issuance standards for MAS licenses are high, and this type of business carries a high risk of money laundering. Moreover, the main regulated activities are located outside of Singapore, making it difficult for MAS to effectively regulate. Those who do not obtain licenses will cease their regulated activities. The providers providing relevant services to Singaporean customers have been regulated, with no change in business scope, and can also provide services to overseas customers. Other service providers related to utility tokens and governance tokens are not affected by the new system. Due to the high risk, existing DTSPs that only provide services to overseas clients need to cease such activities when the system takes effect. Since February 2022, MAS has been continuously conveying its stance and communicating with those who may be affected, and the number of such providers is extremely small.