The Monetary Authority of Singapore (MAS) has issued a firm clarification on its stance toward crypto firms operating beyond its borders, following rising industry concern over a potential ban. In a June 6 statement, MAS confirmed that from June 30 onward, companies offering digital token services solely to overseas customers must obtain a license — though such approvals will be exceptionally rare.

“MAS will generally not issue a licence,” the regulator stated, pointing to the difficulty in overseeing offshore operations and elevated risks of money laundering and terrorism financing. It warned that firms unable to meet the high threshold for licensing will have to halt their regulated services entirely.

This announcement comes amid growing anxiety within the crypto industry, triggered by MAS’s earlier directive that firms must comply with the new licensing regime by the end of June. MAS emphasized that while crypto providers serving clients within Singapore are already regulated, the new rules expand oversight to those with purely overseas operations.

The clarification has already caused ripple effects. WazirX, a Singapore-registered exchange catering mainly to the Indian market, revealed plans to move its operations to Panama in response to the MAS directive.

Legal experts have echoed MAS’s strict approach. Hagen Rooke, a partner at Gibson, Dunn & Crutcher, noted that licenses under the new regime would be granted “only in extremely limited circumstances” due to the inherent regulatory and compliance challenges.

While the new framework targets providers of digital payment tokens and capital market product tokens, MAS clarified that firms dealing with utility or governance tokens are not subject to these rules and can continue operating without a license.

The move highlights Singapore’s tightening grip on its crypto sector, despite the country’s growing enthusiasm for digital assets. A recent survey found that 94% of Singapore residents are now aware of at least one cryptocurrency, underscoring the market’s rapid evolution and the government’s intent to keep it in check through strong regulatory oversight.