Singapore Mandates Licenses for Overseas Crypto Firms: What You Need to Know
Singapore is taking a significant step towards stricter regulation of the cryptocurrency industry. Singapore is now seeking licensing requirements for entities providing custodial and some other services. According to sources, the new legislation will require overseas virtual asset service providers [VASPs] in the region to be licensed. This move aims to enhance investor protection and combat money laundering within the rapidly evolving digital asset landscape.
New Crypto Regulations in Singapore: A Breakdown
The changes were passed in parliament in 2025 but Singapore has given the green light to a new law that provides stricter oversight of cryptocurrency providers, reports confirm. This signifies a major shift in how Singapore views and regulates the crypto market, particularly concerning companies operating outside its borders but serving Singaporean clients.
Why the Change? Addressing the Risks of Overseas Crypto Firms
At present, such firms fall outside the purview of anti-money laundering (AML) and counter-terrorism financing (CTF) regulations in Singapore. By extending the licensing regime to overseas VASPs, the Monetary Authority of Singapore (MAS) aims to close this loophole and ensure that all providers operating within the Singaporean market adhere to the same rigorous standards. Singapore-based virtual asset service providers must now comply with these updated guidelines.
Impact on Crypto Businesses and Investors
The new legislation will have a far-reaching impact on crypto businesses operating in or targeting the Singaporean market. Overseas VASPs will need to obtain the necessary licenses to continue serving Singaporean clients, which involves demonstrating compliance with MAS's regulatory requirements. For investors, this means greater security and protection as crypto firms will be subject to stricter oversight.
Key Takeaways: Singapore's Crypto Licensing Requirements
- Overseas virtual asset service providers (VASPs) now require a license to operate in Singapore.
- The new law aims to combat money laundering and enhance investor protection.
- Compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations is mandatory.
- The move demonstrates Singapore's commitment to a regulated and secure crypto environment.
Stay tuned for further updates on Singapore's evolving crypto regulations and their implications for the industry.