Singapore Tightens Rules for Digital Token Providers and Blocks Unlicensed Brokers

From 30 June 2025, Singapore’s financial regulator will enforce stricter licensing for Digital Token Service Providers (DTSPs) operating solely with overseas clients. Those dealing in digital payment tokens or capital market product tokens must secure a licence, a requirement the Monetary Authority of Singapore (MAS) has set with a high threshold due to heightened money laundering risks. Providers without a licence will need to halt their regulated activities, as the MAS prioritises robust oversight, particularly for firms with significant operations outside Singapore.

​The MAS has consistently communicated this policy since 2022, engaging with affected providers to ensure an orderly wind-down by the 30 June 2025 deadline. Only a small number of DTSPs serving exclusively foreign customers are impacted. Firms offering services to Singapore residents remain unaffected, as they are already regulated under existing laws like the Payment Services Act 2019. Providers dealing with utility or governance tokens are exempt from these new licensing rules.

​In a parallel move, Singapore authorities will block access to two retail forex and CFD brokers, Octa and XM, from 20 June 2025, for operating without local licences. These platforms, based offshore, have been serving Singapore residents in breach of the Securities and Futures Act. The MAS and local police aim to protect consumers by restricting access to these platforms via Singapore-based internet providers, reinforcing the need for proper licensing in the financial sector.