MAS Issues Final Warning to Unlicensed Digital Asset Providers
Singapore’s Monetary Authority (MAS) has issued a decisive directive to unlicensed crypto firms, requiring them to stop offering services to overseas customers or seek proper licensing. The move, dated May 30, 2025, marks a significant escalation in Singapore’s long-standing regulatory stance and reflects a broader global effort to close legal loopholes in the digital asset industry.
The Financial Services and Markets Act (FSMA) now makes it clear: any firm operating from Singapore must be licensed — even if serving clients abroad.
Not a Policy Shift, But Enforcement of Long-Standing Rules
While some market participants perceive this as a sudden policy shift, MAS clarified that this position has been consistently communicated since early 2022. Public consultations and policy updates were released in February 2022, October 2024, and May 2025, signaling that this enforcement is the culmination of a long regulatory process — not a sudden pivot.
Crypto firms previously used Singapore’s small domestic market as an excuse to serve overseas clients without local licensing. That strategy is now over.
Global Crackdown Leaves Crypto Firms with Few Options
As jurisdictions like Thailand, Hong Kong, and the Philippines tighten oversight, crypto firms can no longer rely on regulatory arbitrage. Singapore, once seen as a crypto-friendly haven, now reaffirms its status as a global financial hub first — not a crypto sandbox.
Thailand has already expelled at least five exchanges over non-compliance, while the Philippines mandates physical presence for licensed firms.
Hong Kong Attracts Attention, But No Guarantees
Hong Kong is emerging as a potential alternative, especially for companies displaced from Singapore and Thailand. However, its regulatory framework is also becoming stricter. Exchanges like Bybit are actively exploring licenses in Hong Kong and Malaysia, as seen in recent job postings.
Yet, firms should not expect a regulatory free pass anywhere. Even Hong Kong is now enforcing licensing with increased scrutiny.
Conclusion
The MAS directive signals a global shift toward stricter crypto regulation, where licensing is non-negotiable. Crypto firms operating without proper authorization will find fewer and fewer jurisdictions willing to accommodate them. The message from Singapore is clear: regulatory compliance is no longer a choice — it is a prerequisite for participation in the global crypto economy.
