MAS clarifies position on regulation of digital token service providers

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.

- Timothy Goh

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.