The Monetary Authority of Singapore (MAS) has announced a significant regulatory change affecting cryptocurrency firms, stating that from June 30, companies providing digital token services exclusively to foreign clients will require a license. However, MAS has indicated that such licenses will be granted only in rare cases due to difficulties in supervising offshore firms and concerns regarding money laundering. As a result, businesses unable to secure a license will have to cease their regulated activities. This move follows reports of increasing awareness and popularity of digital assets in Singapore, suggesting that local regulators are tightening controls over the crypto industry. While the new regulations apply mainly to firms serving overseas customers, MAS clarified that companies dealing with certain tokens, like utility and governance tokens, will not be affected by these licensing requirements. The implications of this regulatory shift could lead to a notable exodus of crypto services from Singapore to avoid stringent regulations.

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