The Monetary Authority of Singapore requires overseas encryption service providers to obtain a license before June.

Gate News bot message, the Monetary Authority of Singapore (MAS) recently finalized a regulatory framework for digital token service providers (DTSP) operating in Singapore but serving overseas clients.

According to the 2022 Financial Services and Markets (FSM) Act, these encryption service companies must now meet strict licensing requirements, or they must cease operations by June 30, 2025. MAS pointed out that the cross-border and internet-native structure of the encryption industry exacerbates the risks of money laundering and terrorist financing. The regulatory authority emphasized that licenses will only be issued “in extremely limited circumstances,” namely when companies can demonstrate compliance with international standards and do not pose a risk to Singapore’s reputation.

Despite feedback from industry stakeholders seeking a grace period or transitional arrangements, MAS rejected the request. In its official response, MAS stated: “According to Section 137 of the Financial Services and Markets (FSM) Act, licensed DTSPs must cease or suspend their business of providing DT services outside of Singapore by June 30, 2025.”

It added: “The Monetary Authority insists on not providing a transition period, but will provide a four-week notice period for DTSP to suspend or stop providing all digital currency services before June 30, 2025.”

Source: Bitcoin.com