The Singaporean Central Bank, also known as the Monetary Authority of Singapore, has imposed a June 30th deadline for crypto firms based in the country to stop their overseas operations or risk facing fines.
DTSPs, or Digital Token Service Providers, have been identified as being potentially more susceptible to instances of money laundering and terrorism. The MAS said in an official document that it will approach the licensing of DTSPs with caution.
“In light of the risks set out above, as set out in the consultation paper, MAS will approach the licensing of DTSPs in a prudent and cautious manner and there will be extremely limited circumstances under which MAS will consider granting an applicant a licence under section 138 of the FSM Act (a “DTSP licence”),” read the document.
“Hence, DTSPs which are subject to a licensing requirement under section 137 of the FSM Act must suspend or cease carrying on a business of providing DT services outside Singapore by 30 June 2025.”
Crypto firms that violate this rule can receive fines of up to 250,000 Singaporean dollars and face imprisonment of up to 3 years. Under Singaporean law, crypto firms are required to comply with AML and CFT requirements as part of an ongoing effort to better regulate the digital asset sector in the country, as reported by Cointelegraph.