"All business must be stopped before June 30, otherwise facing criminal penalties." The statement issued by the Monetary Authority of Singapore (MAS) on May 30 was like a bombshell in the Asian Web3 circle.
Singapore, once hailed as a "crypto haven", now takes a hard stance with zero transition period, demanding all unlicensed Digital Token Service Providers (DTSPs) to completely withdraw.
Home sofas, shared office desks, temporary booths - all these are included in MAS's broad definition of "business premises". Anyone or any institution engaging in digital token-related business within Singapore, serving customers domestically or internationally, must be licensed and compliant, otherwise potentially committing a crime.
This article references observations from multiple locally licensed institutions in Singapore (including MetaComp), combining regulatory original text and market feedback, attempting to rationally restore the policy logic, industry response, and future direction behind this massive clearance.
We believe that beyond the regulation, what's more worth focusing on is how to build On-Chain Financial Markets through blockchain financial infrastructure.
01, Iron-Fisted Clearance: A Comprehensive Turning Point in Singapore's Crypto Regulation
The core of this regulatory storm is the Financial Services and Markets Act (FSM Act) passed in 2022, which provided a regulatory framework for digital token services, defining digital tokens and the regulatory scope of related activities. Especially Article 137, which ended Singapore's history as a "regulatory arbitrage paradise" for crypto assets.
According to this clause, all individuals or institutions with business premises in Singapore and providing digital token services to "overseas users" must obtain a DTSP license.
The essential reason is: business models facing overseas markets have higher money laundering risks, and if substantive regulatory activities occur outside Singapore, MAS cannot effectively regulate such entities. Therefore, through DTSP licenses, they aim to regulate digital token service business models based in Singapore but serving global markets.
On June 6, 2025, MAS further clarified:
From June 30, 2025, DTSPs providing services related to "digital payment tokens" and "capital market product tokens" only to Singapore's "overseas users" will need to obtain a license.
Providers offering digital payment tokens or capital market product token services to Singapore's "domestic users" are already regulated under the PS Act, Securities and Futures Act (SFA), and Financial Advisers Act (FAA), with no changes to their permitted business scope. These service providers can also serve Singapore's "overseas users".
Other token-related service providers (such as those dealing only with utility and governance tokens) will not be affected by the new system and will not require licensing or regulation.
(MAS Clarifies Regulatory Regime for Digital Token Service Providers)
The core of the new regulations is a "penetrative regulatory" logic, comprehensively covering both domestic and overseas operations, targeting regulatory arbitrage spaces for "Base in Singapore, serve globally" models. The requirement for service providers to be licensed marks the official start of MAS's comprehensive regulation of local Web3 practitioners.
The trend of global regulation is becoming increasingly apparent, and no region or country can exclusively enjoy the benefits of globalization without adhering to the rules. If a country or region attempts to do so, it will be automatically excluded from the continuous global capital flow by regulatory globalization, and thus no one dares to take such a risk unconditionally;
Secondly, whether it's Web3 or stablecoins, they are essentially being pushed from being unnoticed bystanders to the spotlight under the existing sovereign financial regulation and sovereign credit currency-dominated system. This is a normal outcome of technological innovation being absorbed, and it's surprising why so many people still express shock and disappointment upon hearing about these developments.
The entire world still operates on a basis of established rules and mutual credit understanding, and there is no so-called "utopia" world. Perhaps this "utopia" is the ultimate homeland that some people yearn for. Sorry, not now, not at present, not in the "material" world of Crypto!!!
04, Stablecoins and RWA: Opportunities in the New Regulatory Era - A Game of Replacing the Cage
In this regulatory earthquake, stablecoins and Real World Asset (RWA) tokenization are becoming the most promising fields.
The stablecoin market is experiencing explosive growth. According to Deutsche Bank data, the total market value of stablecoins was around $20 billion in 2020, soaring to $249.7 billion by May 2025, an increase of over 1100% in five years.
In cross-border payment settlements, stablecoin activity continues to rise. Data shows that in the 12 months before May 2024, stablecoin payment settlement volume reached approximately $2.5 trillion, 10 times its 2020 payment settlement volume.
Meanwhile, RWA (Real World Asset tokenization) is becoming the next trillion-dollar market. As of early June 2025, the total on-chain RWA value was $23.1 billion (excluding stablecoins), a year-on-year growth of over 110%.
Globally, the dominance of digital currency "minting" has become a focal point of competition among countries. Besides Hong Kong, the United States, European Union, Africa, and other countries and regions are also engaging in fierce competition for stablecoin leadership.
The United States has introduced the GENIUS Act, attempting to incorporate stablecoins into the national strategic track to consolidate the dollar's dominance in the global monetary system; the EU's Crypto Assets Market Regulation Act seeks to redefine the digital financial order through a unified regulatory framework.
05, Local License Holders' Moat: Strategic Advantages in the New Landscape - A Reward for Believers
In this regulatory turning point, institutions that can successfully cross high barriers and obtain licenses are gradually building clear competitive barriers. According to the MAS website, currently only 33 enterprises have obtained Digital Payment Token (DPT) licenses, including familiar names like Coinbase, Circle, Anchorage, DBS Vickers, and Matrixport.
Under the compliance dividend, Singapore's crypto ecosystem is taking shape, with regional funds and institutions accelerating their convergence towards these enterprises. These institutions are no longer just service providers but "whitelist" members who have first completed identity verification in the new financial order.
(X@PANewsCN)
Unlike overseas headquarters like Coinbase, Circle, and Anchorage, some local Singaporean institutions have built a comprehensive compliant licensing system and are constructing the next-generation financial infrastructure through blockchain.
This locally comprehensive compliant path is a significant advantage for both local business operations and partners seeking to operate in Singapore. We discovered that the licensed institution MetaComp is an excellent reference sample.
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