Latest news with #FinancialServicesandMarketsAct2022
Online Citizen
09-06-2025
- Business
- Online Citizen
MAS: digital token services for overseas customers must be licensed by 30 June or cease operations
SINGAPORE: The Monetary Authority of Singapore (MAS) will mandate that digital token service providers (DTSPs) serving only overseas clients must be licensed from 30 June 2025. This includes providers dealing in digital payment tokens or capital market product tokens. MAS issued a clarification on 6 June 2025, reiterating that the licensing bar will be set 'high' and that such licences will 'generally' not be issued. The central bank cited elevated money laundering risks and supervisory limitations as key reasons. 'If their substantive regulated activity is outside of Singapore, MAS is unable to effectively supervise such persons,' it stated. DTSPs that continue to offer services to only foreign clients without a licence after 30 June will be required to cease those activities. MAS has communicated this position consistently since 14 February 2022, reaffirming it in statements dated 4 October 2024 and 30 May 2025. On 30 May 2025, MAS released its response to feedback on the Consultation Paper on Proposed Regulatory Approach, Regulations, Notices and Guidelines for DTSPs. The proposed framework falls under the Financial Services and Markets Act 2022. According to the regulator, the internet-based and cross-border nature of these services increases the likelihood of misuse for money laundering and terrorism financing, posing risks to Singapore's financial integrity. MAS also clarified that DTSPs already licensed to serve Singapore customers are unaffected. These entities may also serve overseas clients as part of their operations. Providers dealing with tokens other than payment or capital market types – such as utility or governance tokens – are not subject to the new licensing requirement. MAS emphasised that the upcoming framework targets only a small segment of DTSPs. 'Based on available information, we are aware of a very small number of such providers,' the authority stated. The regulator has reached out to those likely to be affected to clarify its policy and discuss an orderly wind-down of operations. Affected parties are advised to contact MAS at AMLCFT@ This move aligns with MAS' broader efforts to fortify Singapore's financial ecosystem against illicit financial activities, without disrupting regulated providers already operating within the city-state. Singapore rejects crypto for SWFs investments over speculation, volatility During Parliamentary sitting on 5 March, then-Minister of State for Trade and Industry and MAS Board Member Alvin Tan reaffirmed that cryptocurrencies are unsuitable for Singapore's sovereign wealth funds due to their speculative and volatile nature. He emphasised that both the Government and MAS view cryptocurrencies as lacking the underlying economic fundamentals required for long-term institutional investments. This stance was reiterated in response to WP MP Jamus Lim's queries on whether cryptocurrencies could play a role for institutional investors, to which Tan questioned the Workers' Party's position and reaffirmed the Government's cautious approach. Tan also responded to concerns from MP Yip Hon Weng about the tightening of regulations on crypto-related services, especially the prohibition of using credit or leverage for crypto purchases. He warned of the risks of compounded debt and financial loss due to the high volatility of cryptocurrencies. Addressing whether a total ban was considered, Tan explained that MAS prefers regulation and education over prohibition, aiming to avoid driving crypto trading underground while fostering a responsible digital asset ecosystem. Temasek's FTX investment: Losses, internal review, and accountability measures Temasek invested US$275 million in FTX across two funding rounds in 2021, believing in the exchange's potential and its role in the digital asset ecosystem. However, in November 2022, FTX collapsed due to liquidity issues and allegations of fraud, leading to its bankruptcy. Following the collapse, Temasek wrote off its entire investment in FTX, acknowledging the loss. In May 2023, Temasek announced that it had conducted an internal review of its due diligence process. As a result, it cut the compensation of its senior management and investment team responsible for the failed investment.
Singapore Law Watch
09-06-2025
- Business
- Singapore Law Watch
MAS clarifies position on regulation of digital token service providers
MAS clarifies position on regulation of digital token service providers Source: Straits Times Article Date: 09 Jun 2025 Author: Timothy Goh The Monetary Authority of Singapore (MAS) said it has set the bar 'high' for licensing, and will 'generally' not issue a licence. The Monetary Authority of Singapore (MAS) has clarified that digital token service providers offering services solely to customers outside Singapore – whether involving digital payment tokens or capital market products – will need to be licensed from June 30. The central bank added in its clarification on June 6 that it has set the bar 'high' for licensing, and will 'generally' not issue a licence. 'The money laundering risks are higher in such business models and if their substantive regulated activity is outside of Singapore, MAS is unable to effectively supervise such persons,' it said. Without a licence, existing digital token service providers serving only overseas customers will be required to cease these activities when the regime comes into effect on June 30, said MAS. In its response on May 30 to feedback on a consultation paper regarding its proposed regulatory framework for digital token service providers, MAS noted that such providers may be more vulnerable to money laundering and terrorism financing risks due to the internet-based and cross-border nature of their services. This increases the likelihood that they could be misused for illicit purposes, to the detriment of Singapore's reputation. The proposed regulatory framework will come under the Financial Services and Markets Act 2022. MAS also clarified that service providers for digital payment tokens or tokens of capital market products that serve customers in Singapore are already regulated, and there will be no change to what these licensed providers can do. Providers serving customers in Singapore may also offer services to overseas clients, while those dealing with other types of tokens – such as utility or governance tokens – are not subject to licensing or regulation under the new regime and are therefore unaffected. MAS said that it has reached out to persons who, based on information available to them, may be affected by the new regime to clarify its policy position and to discuss their plans for an 'orderly wind-down' of the activity. It added that 'based on available information, we are aware of a very small number of such providers'. Parties who may be affected by the digital token service regime may contact MAS at [email protected]. Source: The Straits Times © SPH Media Limited. Permission required for reproduction. Print
Straits Times
08-06-2025
- Business
- Straits Times
MAS clarifies position on regulation of digital token service providers
MAS said it has set the bar 'high' for licensing, and will 'generally' not issue a licence. PHOTO: ST FILE SINGAPORE - The Monetary Authority of Singapore (MAS) has clarified that digital token service providers offering services solely to customers outside Singapore - whether involving digital payment tokens or capital markets products - will need to be licensed from June 30. The central bank added in its clarification on June 6 that it has set the bar 'high' for licensing, and will 'generally' not issue a licence. 'The money laundering risks are higher in such business models and if their substantive regulated activity is outside of Singapore, MAS is unable to effectively supervise such persons,' it said. Without a licence, existing digital token service providers serving only overseas customers will be required to cease these activities when the regime comes into effect on June 30, said MAS. In its May 30 response to feedback on a consultation paper regarding its proposed regulatory framework for digital token service providers, MAS noted that such providers may be more vulnerable to money laundering and terrorism financing risks due to the internet-based and cross-border nature of their services. This increases the likelihood that they could be misused for illicit purposes, to the detriment of Singapore's reputation. The proposed regulatory framework will come under the Financial Services and Markets Act 2022. MAS also clarified that service providers for digital payment tokens or tokens of capital market products that serve customers in Singapore are already regulated, and there will be no change to what these licensed providers can do. Providers serving customers in Singapore may also offer services to overseas clients, while those dealing with other types of tokens - such as utility or governance tokens - are not subject to licensing or regulation under the new regime and are therefore unaffected. MAS said that it has reached out to persons who, based on information available to them, may be affected by the new regime to clarify its policy position and to discuss their plans for an 'orderly wind-down' of the activity. It added that 'based on available information, we are aware of a very small number of such providers'. Parties who may be affected by the digital token service regime may contact MAS at AMLCFT@ Join ST's Telegram channel and get the latest breaking news delivered to you.
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Business Standard
04-06-2025
- Business
- Business Standard
Singapore court rejects restructuring plan of WazirX parent Zettai
In a major blow to crypto traders on exchange platform WazirX, the Singapore High Court on Wednesday rejected the proposed restructuring plan of WazirX's parent company, nearly a year after an alleged cyber heist resulted in a loss of $235 million in virtual digital assets. The dismissal of parent firm Zettai's scheme of arrangement comes weeks after the company incorporated a subsidiary, Zensui Corporation, in Panama. The court's action was prompted by the company's failure to disclose these incorporation details during the restructuring process, according to people familiar with the matter. Zensui was incorporated on 10 March this year, according to an affidavit submitted to the Singapore Court and reviewed by Business Standard. In addition, the company said Zettai did not intend to obtain a digital token service provider (DTSP) licence in Singapore. It added that the parent or its Panama subsidiary did not intend to apply for registration with India's Financial Intelligence Unit (FIU-IND). The crypto exchange may appeal against the latest order issued by the Singapore Court, a person close to the development said, requesting anonymity. According to Singaporean laws, digital token service providers (DTSPs), subject to a licensing requirement in the country, are required to suspend or cease such business outside the island nation by 30 June 2025. The setback to the company may further stretch the timeline on the distribution of available assets to its creditors. 'Zettai also failed to disclose the incorporation of its subsidiary, Zensui, which was incorporated on 10 March, and an agreement to transfer cryptocurrency assets to Zensui—both of which were not communicated to users or the Court,' said Navodaya Singh Rajpurohit, legal partner, Coinque Consulting and founder, Pravadati Legal. He added that Zettai revealed it does not intend to register with the Financial Intelligence Unit – India, a prerequisite for lawfully distributing cryptocurrency in India. 'These omissions and regulatory non-compliances made the scheme unviable and lacking in transparency,' he said. In the affidavit, the company said the Financial Services and Markets Act 2022 (FSM) did not present any legal or practical impediment to Zettai effecting the first distribution or allowing withdrawals in accordance with the scheme of arrangement—one of the reasons it did not intend to apply for the DTSP licence. 'The Panama subsidiary was the custody of the crypto related to redistribution since the holding was with Singapore. It was an interim since the firm wanted to go to a jurisdiction where it could follow a framework and regulation after 30 June,' a person close to the company said. In April, Zettai said that 93.1 per cent of eligible voting creditors, representing 94.6 per cent in value of claims, voted in favour of the scheme, months after the company proposed restructuring in the Singapore High Court. In total, 1,41,476 scheme creditors, representing $195.65 million in approved claims, cast a vote. Out of the total creditor base, 1,31,659 investors representing $184.99 million voted in favour of the scheme.
