Singapore’s central bank has issued a strict new order mandating that all local crypto service providers must stop offering digital token services to overseas clients by June 30, 2025. The Monetary Authority of Singapore (MAS) is enforcing this rule under Section 137 of the Financial Services and Markets Act (FSM Act), which presumes that companies incorporated in Singapore are operating from within the country—even if their main business is abroad.

This sweeping crackdown applies to all Singapore-based companies, individuals, and partnerships involved in crypto activities beyond national borders. They must either cease their operations or secure a special license, which MAS says will only be granted in very rare cases. The authority emphasized there will be no transitional arrangements for compliance.

Failure to comply with the new directive could result in severe penalties, including fines of up to 250,000 Singapore dollars (around $200,000) and imprisonment for up to three years.

MAS clarified that only firms currently licensed or exempted under existing regulations — including the Securities and Futures Act, Financial Advisers Act, or Payment Services Act — may continue operations without clashing with the new rules. However, obtaining new licenses under the updated framework will be difficult due to concerns related to Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT).

Legal experts warn that companies must take swift action. Hagen Rooke, partner at Gibson, Dunn & Crutcher, advised businesses to restructure operations to remove any Singapore links that might expose them to regulatory scrutiny.

This move reflects Singapore’s tightening grip on crypto oversight and aims to prevent regulatory loopholes from being exploited by firms registered locally but operating globally without safeguards. The FSM Act strengthens MAS's ability to enforce AML and CFT compliance on overseas crypto activities tied to Singapore-based entities.