The Monetary Authority of Singapore (MAS) recently issued an important regulatory directive requiring all local cryptocurrency institutions that do not hold a Digital Token Service Provider (DTSP) license to completely stop overseas operations by June 30. This move is one of the key measures for Singapore to strengthen cryptocurrency market supervision and protect the growing group of retail investors.

According to MAS, only DTSP licensed applicants who have been formally approved by the Payment Services Act (PSA) are allowed to provide cryptocurrency-related services to overseas customers. Project parties, exchanges or platforms that have not yet been approved must fully liquidate related overseas operations, otherwise they will face compliance risks and enforcement actions.

In response to industry opinions, MAS clearly warned that unlicensed operators who provide services through cross-border means may expose users to unfair operations and financial risks, and may even trigger financial misconduct if they are not approved by regulators. MAS rejected the "phased implementation" requirements put forward by some operators, emphasizing that the relevant regulations have been issued since the public consultation stage, and operators should be ready for compliance. MAS pointed out that this regulatory policy aims to strike a balance between protecting users and promoting a healthy crypto ecosystem.

MAS also clarified that whether unlicensed operators provide services directly to overseas or operate indirectly through intermediaries, they are all in violation of regulations. If a company attempts to split its business overseas, but it is actually still controlled and operated by the Singapore headquarters, it will be regarded as a non-compliant behavior to circumvent regulation and may face penalties.

As Singapore users' acceptance of digital assets continues to increase, MAS is also strengthening its supervision and stated that it will focus on tracking and investigating any gray structure suspected of "circumventing licensing" to enhance industry accountability.

According to the Straits Times' April 2024 report, Singapore's digital asset ownership rate has risen to 26%, a further increase from 24.4% last year. The adoption trend of cryptocurrencies is most significant among Generation Z and Millennials, with nearly 40% of them holding cryptocurrencies. Among those who hold cryptocurrencies, 52% have used crypto assets for payment, and another 67% plan to use them in the future. Payment scenarios include online shopping, bill payments, and physical store consumption, while older users are more inclined to cross-border P2P transfers, such as remittances from relatives and friends.

Despite the increasing popularity of cryptocurrency, some pain points remain unsolved. More than 60% of respondents said that the "threshold for using cryptocurrency is too high", and 54% believed that "lack of merchant acceptance" was the main obstacle. However, the overall on-chain transaction volume continues to grow, indicating that Singapore is gradually establishing its strategic position as Asia's "compliant crypto hub".