When Singapore begins to drive away cryptocurrency enthusiasts The former Web3 paradise Singapore is starting to rush people. On May 30th, the Monetary Authority of Singapore (MAS) officially released the final policy guidelines for Digital Token Service Providers (DTSP), which have a very firm stance All encryption service providers registered or operating in Singapore who have not obtained a DTSP license must cease providing services to overseas customers before June 30, 2025. There is no transitional period for this regulation, and violators will be punished according to law. Companies found to have violated the law will face fines of up to SGD 250000 (USD 200000) and imprisonment for up to three years. This policy was like a bolt from the blue, causing many cryptocurrency practitioners in Singapore to tremble in their hearts. As the hub of Web3 in Asia, Singapore has always played the perfect place for regulatory arbitrage. In the past, Singapore implemented a "differentiation between internal and external" regulatory strategy, allowing companies registered in Singapore to freely provide services to overseas customers, with stricter regulatory requirements only for businesses targeting the local market. Especially when major markets such as China implemented a comprehensive ban and the US SEC intensified enforcement efforts tightened regulation, Singapore timely played a safe haven role, providing a secure foothold for numerous cryptocurrency exchanges, funds, and project parties, leading to waves of cryptocurrency enterprise migration. Even Singapore's sovereign fund Temasek has participated in investing in cryptocurrency companies such as FTX and Immutable, consolidating Singapore's position as the Asian crypto hub. However, the clarification of regulatory policies has gradually closed the loophole of "regulatory arbitrage". According to the DTSP final regulatory response document released by Singapore's MAS, the most stringent key points are: Comprehensive cross-border business management: Regardless of whether the service targets are local or overseas customers in Singapore, as long as digital token related businesses are conducted within Singapore, a DTSP license is required, which directly cuts off the regulatory arbitrage path of "registering in Singapore but only serving overseas customers" in the past. The definition of a place of business is extremely broad: MAS defines a "place of business" as "any location in Singapore used by a holder to conduct business", even including movable stalls. This definition covers almost all possible business locations, regardless of size. Dual coverage of individuals and institutions: Regulatory targets include both individuals or partnerships operating in Singapore's business premises, as well as Singaporean companies engaged in digital token service business outside of Singapore, achieving full coverage of entities. In addition, although MAS states that it is acceptable for overseas company employees to work from home, the definition of "employee" is vague, and whether project founders and shareholders belong to employees is entirely at the discretion of MAS. Why did Singapore's MAS suddenly launch a heavy attack? This is not a sudden policy attack by Singapore's financial regulatory authorities on cryptocurrency companies. As early as 2022, the Monetary Authority of Singapore (MAS) introduced the Financial Services and Markets Act, which includes Part 9 on the regulation of cryptocurrencies. Subsequently, multiple public consultations and draft opinions were conducted, and the May 30th document responded to the consultation while detailing specific regulatory methods, regulations, notices, and DTSP licensing guidelines. According to the consultation document, the core consideration factor of MAS is that "some cryptocurrency companies may damage Singapore's reputation". The original text states that "due to the internet-based and cross-border nature of digital token services, digital token service providers (DTSPs) are more susceptible to money laundering/terrorist financing (ML/TF) risks... The main risk posed by DTSPs to Singapore will be reputation risk, which could damage Singapore's reputation if they participate or are misused for illegal purposes. ” The origin of everything may have to go back to 2022, when the cryptocurrency exchange FTX invested by Temasek and the local cryptocurrency fund Three Arrows Capital suffered a severe blow to Singapore's financial reputation. The then Singapore Finance Minister, Huang Xuncai (current Prime Minister), publicly stated that this investment caused reputational damage, and Temasek subsequently imposed pay cuts on the investment team and senior management. Under the latest regulations, which cryptocurrency companies will be affected? According to the consultation document, all entities related to cryptocurrency trading must be licensed, including cryptocurrency trading platforms, cryptocurrency custody, cryptocurrency transfers, cryptocurrency issuance On June 30, 2025, as the deadline approached, panic from social media platforms such as Moments enveloped the hearts of cryptocurrency practitioners in Singapore, but more emotions were confusion. I didn't know about the relevant policies before, but my social circle suddenly exploded. Currently, there are different opinions from all sides, so we can only wait and see. If it's too late, we can leave Singapore and go to neighboring Malaysia, "said Adam (pseudonym), a practitioner from the project team. Kevin, a practitioner at a certain cryptocurrency exchange, is very melancholic. His company has already made plans to relocate its office to Hong Kong as a whole, but he does not know the specific timetable. He has been based in Singapore for 2 years and is preparing to apply for Singapore Permanent Residence (PR). He is regretful and reluctant to part with this change. Previously, Hong Kong Legislative Council member Ng Kit cheung posted on social media to solicit Singaporean cryptocurrency practitioners to settle in Hong Kong. He stated that Singapore had previously released the "Digital Token Service Provider Licensing Guide", which proposed new policies for companies, institutions, and personnel engaged in virtual assets. Since the release of the Virtual Asset Declaration in 2022, Hong Kong has actively welcomed the industry to develop in Hong Kong. According to informal statistics, thousands of Web3 companies have landed in Hong Kong. If you are currently engaged in related industries in Singapore and intend to relocate your headquarters and personnel to Hong Kong, I am willing to provide assistance. Welcome to Hong Kong for development! '' Lily, COO of crypto custody platform Cobo and former General Counsel of PAG Pacific Investment Group, believes that this policy has excessively amplified panic. The policy maintains MAS's consistent regulatory style and mainly affects the Singapore front desk and substantive operation teams of non licensed exchanges. It will not affect exempted and licensed enterprises, including Cobo, as well as institutions whose business scope is not within the scope of license supervision. According to the official website of Mas in Singapore, 24 companies including COBO, ANTALPA, CEFFU, and MATRIXPORT are on the exemption list, while 33 companies including BITGO, CIRCLE, COINBASE, GSR, Hashkey, and OKX SG have obtained DTSP licenses. For these licensed and exempted enterprises, the new policy has actually created a fairer competitive environment, enhanced the reputation value of licensed institutions, and laid the foundation for global expansion. Correspondingly, when the era of regulatory arbitrage comes to an end, some offshore cryptocurrency companies based in Singapore have begun to migrate to Hong Kong, Dubai, Malaysia and other places. Adam believes that the departure of cryptocurrency practitioners from Singapore is a major trend, and this policy is more aimed at accelerating this process. The cost of living in Singapore is high, boring, and most importantly, there are too few opportunities to earn money now. If you want to live in Japan and earn money, go to Dubai. Once upon a time, Singapore was known as the 'Jerusalem of encrypted Jews', but now its gates have tightened and encrypted Jews have to flee and continue to wander.