Cobo’s Vice President of Custody, alexzuo, confirmed that the Monetary Authority of Singapore (MAS) has finalized the regulatory framework for Digital Token Service Providers (DTSPs) under the Financial Services and Markets Act (FSMA). Effective from June 30, 2025, all DTSPs operating without compliance must halt their activities immediately, underscoring MAS’s commitment to robust regulatory oversight in the crypto sector.
The DTSP classification encompasses entities offering token trading, custody, and transfer services to international clients within Singapore. Existing license holders under PSA, SFA, or FAA regimes are exempt from obtaining a new DTSP license but are mandated to adhere to enhanced compliance protocols. These include stringent technical risk controls, mandatory annual audits, and rapid reporting of significant security breaches within one hour.
MAS’s regulatory evolution marks a strategic transition from a mere licensing model to a comprehensive compliance-based framework. Additionally, the authority introduces a tiered regulatory approach for stablecoins, reflecting a nuanced risk management strategy tailored to the growing digital asset ecosystem.