Singapore Strengthens Its Stance: A New Era for Digital Asset Regulation

A Report by CYS Global Remit FinTech Development Unit

Singapore’s approach to cryptocurrency regulation is creating ripples across the global financial landscape. As digital assets rapidly evolve, the Lion City is establishing a sophisticated regulatory framework—protective yet progressive—that aims to foster innovation while safeguarding the ecosystem. But make no mistake: these regulations are firm, signalling a major shift in the industry. 

A Strategic Dual Approach 

The Monetary Authority of Singapore (MAS) has adopted what industry insiders are calling a "dual strategy" for digital assets: a strong protective stance for retail investors paired with a structured, stringent pathway for Digital Payment Token (DPT) providers. 

This isn’t about sitting on the fence. It’s a deliberate strategy to balance opportunity and risk—encouraging innovation while keeping malicious actors at bay. 

Retail Investors: Proceed with Caution 

For everyday investors, Singapore’s message is clear: exercise caution. MAS warns that cryptocurrencies are: 

• Highly volatile and speculative 

• Lacking intrinsic value 

• Unsuitable for the general public 
  

The regulatory framework backs these warnings with concrete restrictions, including: 

• No credit or leverage offered to retail clients 

• Ban on local credit card use for crypto transactions 

• Prohibition on public advertising and promotion of crypto services 

• Mandatory transparency and risk disclosures for corporate promotions 
  

The Challenges for Service Providers 

For DPT providers, a different set of challenges looms. Starting June 30, 2025, Singapore is rolling out what many are calling a “near-ban” on foreign-only digital token services. The new rules include: 

• Mandatory licensing for firms serving overseas clients 

• Licenses granted only in exceptional circumstances 

• Strict adherence to AML/CFT standards 

• Severe penalties for non-compliance 
  

These measures draw from the Payment Services Act (PSA) for local providers and the Financial Services and Markets Act (FSMA) for overseas operations, marking a comprehensive regulatory overhaul. 

The Global Context 

Singapore’s move isn’t isolated. It reflects a broader global trend toward increased oversight: 

• Hong Kong aims to promote regulated retail participation while tightening licensing 

• Other jurisdictions are shifting from permissiveness to clarity and stringency 

• As a FATF member, Singapore’s rigorous AML/CFT standards help uphold its reputation as a transparent, clean financial hub 
  

Looking Ahead: Innovation Within Boundaries 

Despite the regulatory tightening, Singapore isn’t shutting the door on innovation. Instead, it’s creating a framework where legitimate businesses can thrive, and illicit actors are kept out. The message is clear: Singapore aspires to be a leading jurisdiction for regulated digital asset innovation—prioritizing stability, trust, and industry integrity over chaotic growth. 

For businesses in the digital asset space, the June 2025 deadline approaches quickly. Firms must decide: can they meet Singapore’s high standards, or will they look elsewhere? 

Final Thoughts 

Singapore’s evolving regulatory landscape reflects industry maturation. It’s no longer a question of if regulations will come, but how comprehensive they will be. Retail investors are urged to exercise caution, while service providers must adapt or exit the market. For Singapore, this is about cementing its position as a trusted, stable hub for legitimate digital assets. 

In this long-term game, trust and stability are paramount. Whether Singapore becomes the premier destination for compliant digital asset businesses depends on how well these foundations are built—and these regulators are clearly playing the long game. 

Sources  Cointelegraph. (2025, June 6). Singapore confirms near-ban on foreign-only digital token services. Retrieved from https://cointelegraph.com/news/singapore-confirms-near-ban-on-foreign-only-digital-token-services    Cointelegraph. (2025, June 2). Singapore orders local crypto firms to cease overseas activity by June 30. Retrieved from https://cointelegraph.com/news/singapore-crypto-firms-deadline-overseas-digital-token-services 

Fintechnews.sg. (2025, March 5). Singaporeans Should Stay Clear of Cryptocurrencies, Says Alvin Tan. Retrieved from https://fintechnews.sg/108497/crypto/singapore-cryptocurrencies/    Monetary Authority of Singapore. (2022, January 17). MAS Issues Guidelines to Discourage Cryptocurrency Trading by General Public. Retrieved from https://www.mas.gov.sg/news/media-releases/2022/mas-issues-guidelines-to-discourage-cryptocurrency-trading-by-general-public