Monetary Authority of Singapore Crypto Oversight: Strict Rules, Few Licenses, No Grace Period

By Robert Stukes On 16 Nov, 2025 Comments (15)

MAS Compliance Cost Calculator

MAS Compliance Requirements

This calculator helps you estimate the annual costs of complying with Singapore's strict crypto regulations. Based on MAS's June 2025 requirements, businesses must meet several compliance criteria to operate legally in Singapore.

Key Requirements

Minimum capital: SGD 1 million
Singapore-based compliance officer (SGD 150k-250k/year)
Annual audit by MAS-approved firm
Travel Rule implementation (SGD 50k-200k)
Prohibited credit card payments for crypto

Annual Transaction Volume (SGD)

Number of Employees

Existing Compliance Infrastructure

When the Monetary Authority of Singapore (MAS) announced in June 2025 that it would issue crypto licenses only in extremely limited circumstances, it wasn’t a tweak to the rules-it was a full shutdown of the door. For companies that thought Singapore was still a crypto-friendly hub, the message was clear: if you don’t have elite compliance systems, a Singapore-based officer, and a rock-solid reason to be here, you’re out.

Why MAS Changed Everything

Singapore used to be a magnet for crypto firms. Its reputation as a stable, well-regulated financial center made it a go-to for companies wanting to look legitimate while serving clients overseas. But MAS saw the problem: companies were using Singapore’s name as a badge of trust, then operating with minimal oversight elsewhere. That’s called regulatory arbitrage, and MAS decided it wouldn’t tolerate it anymore.

The Financial Services and Markets Act 2022 (FSMA) gave MAS the legal power to go after any Singapore-based company, no matter where its users were. If your server is in Singapore, your team is in Singapore, or you’re incorporated here-you’re under MAS’s thumb. Even if you only serve customers in Nigeria, Brazil, or Ukraine. That’s not common in global finance. Most regulators only care about who lives in their country. MAS cares about what your company does from Singapore, period.

The DTSP License: A Door That’s Almost Closed

To operate legally in Singapore, crypto firms must now hold a Digital Token Service Provider (DTSP) license. But here’s the catch: MAS says it will generally not issue a licence. That’s not a typo. It’s not a suggestion. It’s the official stance. Only firms with proven, world-class compliance infrastructure will even get a look.

The requirements aren’t light:

Minimum capital: At least SGD 1 million in liquid assets
Must hire a full-time, Singapore-based compliance officer (salaries range from SGD 150,000 to SGD 250,000 per year)
Annual independent audit by a MAS-approved firm
Full AML/CFT protocols-no exceptions
Cybersecurity standards matching those of major banks

And you have to prove you can do all this before June 30, 2025. No extensions. No grace period. No “we’re working on it.”

Travel Rule Enforcement: Tracking Every Transaction Over SGD 1,500

If you send or receive more than SGD 1,500 (about USD 1,100) in crypto, MAS requires you to collect and share:

Full name of sender and receiver
Identification number (passport, national ID)
Account or wallet address

This is the Travel Rule, enforced under Notice PSN02. It’s not optional. It’s not a suggestion. You need software that can automatically capture, store, and transmit this data to other platforms. Implementation costs? Between SGD 50,000 and SGD 200,000, depending on your volume. Small firms? Many can’t afford it. And if you’re serving users in countries where this data can’t be shared due to local laws? You’re stuck between two regulators.

Compliance officer monitoring global crypto transactions under strict MAS regulations in Singapore.

Consumer Protection: No Credit Cards, No Guesswork

MAS doesn’t just care about crime-it cares about people losing money. Since September 2024, all licensed platforms must:

Prohibit customers from buying crypto with credit cards
Conduct a suitability assessment before allowing trading
Clearly disclose all risks in plain language

This means no more “buy Bitcoin with your Amex” ads. No more pushy sales tactics. No more pretending crypto is a safe investment. Platforms must now prove they understand their users’ financial background and risk tolerance. That’s a huge shift from the wild west of crypto marketing.

Stablecoins Are Treated Like Cash

MAS doesn’t treat stablecoins like “crypto.” It treats them like digital cash. Since November 2023, any stablecoin issued or traded in Singapore must maintain “a high degree of value stability.” That means:

Reserves must be held in low-risk, liquid assets (cash, government bonds)
Regular audits of reserve holdings are mandatory
Issuers must disclose exactly what backs the token

No algorithmic stablecoins. No unbacked tokens. No “we’ll figure it out later.” If you can’t prove your stablecoin is as safe as a bank deposit, you can’t operate here.

Penalties Are Not a Warning-They’re a Death Sentence

Violate any of these rules? You’re looking at:

Fines up to SGD 200,000 (USD 147,000)
Imprisonment for individuals
Immediate shutdown of operations

There’s no “first offense” exception. No warning letter. No probation. One violation, and your license is gone. Your team is out. Your business is dead in Singapore.

Abandoned crypto server room with revoked license notices and a broken credit card in Singapore.

What’s Happening to the Industry?

The results are stark. Before the June 2025 deadline, around 200 firms had applied for or held provisional licenses. By July 2025, only 15-20 remained fully compliant, according to Blockdata’s analysis. That’s a 90% drop.

Crypto job postings in Singapore fell 37% in Q1 2025 compared to Q4 2024. Salaries for compliance officers skyrocketed. Firms that didn’t have the budget for a Singapore-based team packed up and moved to places like Dubai or Switzerland, where licensing is still active.

Even big players felt the pressure. Some international exchanges shut down their Singapore offices entirely. Others kept a skeleton crew just to handle compliance for local users-but stopped serving global clients from here.

Why This Matters Beyond Singapore

MAS isn’t just making rules for Singapore. It’s setting a global standard. Its approach is now the most stringent in the world. Other regulators are watching closely. If MAS can prove that strict oversight reduces crypto crime and protects financial integrity, more countries might follow.

But there’s a trade-off. By shutting the door to most new entrants, Singapore risks becoming irrelevant in the next wave of crypto innovation. DeFi, tokenized assets, and Web3 infrastructure are moving fast. If the best talent and technology can’t come here, Singapore’s financial hub status might become a museum piece-impressive, but not growing.

What’s Next?

MAS has signaled it’s working on new rules for DeFi protocols and stablecoin arrangements by late 2025. That means the rules aren’t done. But don’t expect relief. Expect more detail. More complexity. More cost.

The message is consistent: Singapore wants a tiny, ultra-clean crypto industry. Not a big, noisy one. Not a speculative one. Just a few firms that can prove they’re trustworthy, transparent, and tightly controlled.

If you’re a business trying to operate here, you need to ask yourself: Can we afford the compliance? Can we hire the officer? Can we afford the software? Can we live without serving global customers from Singapore?

If the answer is no-you’re not just out of luck. You’re out of the game.

Can I still operate a crypto business in Singapore if I don’t have a DTSP license?

No. Operating without a DTSP license after June 30, 2025 is illegal. MAS enforces this strictly, even against foreign companies that have a Singapore-based team, office, or incorporation. Penalties include fines up to SGD 200,000, imprisonment, and forced shutdowns. There are no exceptions or grace periods.

What’s the difference between MAS and other crypto regulators like the SEC or FCA?

Unlike the SEC or FCA, which focus on protecting local investors and regulating specific asset types, MAS applies its rules extraterritorially. If your company is based in Singapore-even if you serve only overseas clients-you’re fully under MAS control. Also, MAS has banned credit card crypto purchases and treats stablecoins like cash, which most other regulators don’t. Its licensing system is far more restrictive, with only a handful of approvals expected.

Do I need a Singapore-based compliance officer even if I’m a foreign company?

Yes. If your company is incorporated in Singapore, has a local office, or employs staff there, you must appoint a full-time Singapore-based compliance officer. This person must be qualified, independent, and directly accountable to MAS. Outsourcing this role or hiring remotely doesn’t meet MAS requirements. The officer must be physically present in Singapore and available for audits and inspections.

Can I still accept crypto payments in Singapore as a business?

Yes, but only if you’re not operating as a crypto exchange, custodian, or trading platform. Businesses that accept crypto as payment for goods or services don’t need a DTSP license-unless they’re holding or transferring crypto for others. If you’re just receiving crypto as payment and converting it to SGD immediately, you’re fine. But if you’re storing it, trading it, or offering it to customers as a service, you need a license.

Why did MAS move so quickly after announcing the rules?

MAS gave only four weeks between the final announcement and the June 30, 2025 deadline. The goal was to prevent firms from dragging out compliance or exploiting loopholes. MAS believes that a short, sharp deadline forces only serious, well-prepared companies to stay. Critics say it’s unfair to small firms, but MAS argues that regulatory integrity can’t wait for slow movers.

Are DeFi platforms regulated under MAS rules?

Not yet, but they’re coming. MAS has confirmed it’s developing specific rules for decentralized finance protocols, expected by late 2025. Currently, if a DeFi platform has a Singapore-based team, developer, or corporate entity, it may already be subject to existing DTSP rules. MAS is likely to target DeFi platforms that offer custody, trading, or lending services-even if they claim to be “decentralized.”

What happens to my crypto assets if my DTSP license is revoked?

If your license is revoked, MAS will require you to freeze customer assets and begin a controlled wind-down. You must notify all users and provide a clear path to withdraw their funds within a set timeframe. MAS may appoint a third-party custodian to oversee the process. Your assets won’t be seized, but you’ll lose control over them until the wind-down is complete. Failure to comply can lead to criminal charges.