Singapore's New Digital Token Service Provider Licensing Framework

Effective 30^th June 2025, Singapore's financial regulatory framework takes a major leap forward. With the full commencement of key provisions under the Financial Services and Markets Act 2022 (FSMA), entities involved in digital token (DT) services, even if their operations are focused offshore, must now navigate a detailed, mandatory licensing regime if operating from or incorporated in Singapore.

Why this regime matters

The Monetary Authority of Singapore (MAS) has implemented this framework to close gaps in oversight for internet-based and cross-border digital token businesses, which carry a higher risk of money laundering and terrorism financing. While Singapore has long held a reputation as a forward-looking digital asset hub, this move cements its stance as a jurisdiction with a stringent compliance framework for digital token activities.