MAS Issues Clarification on the Regulatory Regime for Digital Token Service Providers under the Financial Services and Markets Act 2022

By Leon Yee and Sally Kim

On 30 May 2025, the Monetary Authority of Singapore (“MAS”) published its response to feedback on the proposed regulatory approach, regulations, and notices for digital token service providers (“DTSPs”) under the Financial Services and Markets Act 2022 (“FSM Act”). This article provides a summary of the key features of the new regime, MAS’s clarifications, and practical implications for affected entities.

Scope of the DTSP Regime
The DTSP regime applies to individuals, partnerships, or Singapore-incorporated entities that carry on a business of providing digital token (“DT”) services outside Singapore. The regulatory focus is on mitigating money laundering and terrorism financing (“ML/TF”) risks, as well as reputational risks to Singapore, given the cross-border and internet-based nature of such services.

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