Singapore Tightens Licensing Requirements for Digital Token Service Providers

The Monetary Authority of Singapore (MAS) has issued clarifications on its licensing framework for Digital Token Service Providers (DTSPs). Starting June 30, 2025, DTSPs serving overseas clients solely focused on digital payment tokens or capital market product tokens will need to obtain a license. This step reflects the heightened risk of money laundering associated with such operations, primarily conducted outside Singapore. The MAS’s rigorous licensing standards are aimed at effectively mitigating these risks. Unlicensed providers will be required to cease regulated activities.