What happened?
Singapore’s central bank has mandated that all domestic crypto service providers without a Digital Token Service Provider (DTSP) license must stop their overseas operations by June 30. This directive is part of Singapore’s initiatives to enhance regulatory oversight and safeguard its growing retail crypto market. Companies without the necessary approvals under the Payment Services Act are required to comply or face penalties.
Who does this affect?
This affects all crypto service providers in Singapore that have not acquired a DTSP license yet continue to operate overseas. It impacts their ability to serve international clients, halt any cross-border services, and potentially affects users who depend on these services for digital asset transactions. Businesses attempting to circumvent these regulations by relocating operations will also be targeted by these strict rules.
Why does this matter?
This move is significant for the cryptocurrency market as it signals increased regulatory scrutiny in a region with a high adoption rate of digital assets. The crackdown could lead to reduced market access for unlicensed firms, affecting their revenues and market presence. As Singapore strengthens its position within Asia’s regulated digital finance ecosystem, this regulation may influence other countries’ approaches to crypto regulation.