Written by: Mankun
Singapore's Web3 Paradise Status Faces New Challenge
Singapore, the financial center hailed as the "Web3 Paradise of Asia," has long been the preferred location for global crypto asset service providers and Web3 entrepreneurs due to its zero capital gains tax and comprehensive legal system. In October 2024, the Monetary Authority of Singapore (MAS) released a detailed consultation paper on new regulations for digital token service supervision, signaling a tightening of regulatory policies. The response document published by MAS on May 30, 2025, has sparked heated discussions about whether crypto businesses should "withdraw" from Singapore. So, what will happen to crypto asset service providers operating in Singapore—especially those serving overseas clients?
Core of New Regulations: Regulatory Upgrade
As early as 2022, Singapore passed the Financial Services and Markets Act, with Chapter 9 specifically establishing a regulatory framework for Digital Token Services (DTS), covering various virtual asset and crypto asset businesses, such as:
Crypto asset and fiat currency exchange
Confidential asset transfer and payment
Crypto asset custody services
However, the previous Financial Services and Markets Act did not strictly limit Singapore-registered entities from serving overseas users, and with tax incentive policies, numerous Web3 projects landed in Singapore, radiating services globally. By October 2024, the regulatory framework was further refined, with MAS explicitly stating in the consultation paper that Singapore-registered entities must obtain a DTSP license even when providing crypto services to overseas customers. With the consultation response published by MAS in May 2025, a more specific timeline emerged: the new regulatory plan will officially take effect on June 30, 2025. MAS's intention is clear: the era of wild growth is over, and to stay and play, you must follow the rules.
Why is Singapore Doing This?
One might ask: Hasn't Singapore always been crypto-friendly? Why the sudden change of face? In fact, this is not a "change of face" but a continuation of Singapore's consistent pragmatic style. As one of the earliest jurisdictions to begin regulating the crypto industry, its approach has been to avoid "one-size-fits-all" strategies, initially giving the industry some space while closely monitoring and developing together, continuously exploring regulatory policy upgrades.
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