Singapore’s DTSP Act Takes Effect, Platforms to Exit
- MAS mandates DTSPs without licenses to halt operations immediately.
- Strict requirements enforced from June 30, 2025.
- Exodus anticipated in crypto market operations.
Singapore’s Digital Token Service Provider Act comes into force today, compelling unlicensed crypto platforms to exit the market as mandated by the Monetary Authority of Singapore.
The event is crucial due to the potential disruption in local crypto operations, impacting global trading dynamics.
The Implementation of the DTSP Act
Singapore’s Monetary Authority has enforced the Digital Token Service Provider (DTSP) Act, signaling a significant shift. The law mandates that all unlicensed digital service platforms must cease operations, impacting various market players.
Under the new regulations, any entity managing digital token services from Singapore, even for overseas users, is affected. The MAS stated that license approval will occur in “extremely limited circumstances.”
“Any person or firm operating as a DTSP must suspend or cease operations if they are providing DT services outside of Singapore by June 30 and may not commence further operations without a license.” — Monetary Authority of Singapore (MAS)
Impact on the Crypto Market
The decision affects numerous platforms that primarily service international clients. Market players must cease operations immediately unless they’ve secured licensing from the MAS.
The shift reflects Singapore’s commitment to tighten control over the digital asset space, signifying potential restructuring across DeFi and digital tokens from the region.
Broader Regulatory Implications
The MAS aims for improved regulatory control, overriding the previous volatile regulatory landscape. It is expected that companies will shift operations to remain compliant.
Potential outcomes include reduced on-chain activity and declining Total Value Locked (TVL) in projects headquartered in Singapore. Past enforcement precedents indicate firms may relocate to achieve compliance.
