The Monetary Authority in Singapore (MAS) shed light on the DMS system providers (DTSPS), after a widespread panic in the industry due to a possible ban on encryption companies that serve customers abroad
In an advertisement on June 6, MAS reiterated that starting from June 30, the encryption companies “provide services only to customers outside Singapore related to digital payment symbols and capital market products symbols.”
However, the organizer warned that such licenses will only be granted in “very limited conditions”.
The agency said: “MAS has put the tape high for the license and will not generally issue a license,” noting the difficulty of overseeing external companies and the dangers of money laundering as major concerns.
The organizer added: “MAS is unable to effectively supervise these people.”
Related to: UK FCA proposes lifting the ban on Crypto Etns for retailers
The beginning of the encrypted exit?
The Crypto Market noticed when MAS has set a final date on June 30 for local coding service providers to stop providing digital digital services to foreign markets earlier this month.
The new rules have already sparked a shift. The India -based Wazirx, which is based in Singapore, has announced that it will transfer its operations to Panama, shortly after MAS announced the deadline.
At the time of the announcement of the deadline, Hagan Rock, a partner in Gibson, Duna and Wrafter, said that the licenses will only be released in rare cases. In the LinkedIn post, he said:
“MAS will give licenses under the new framework only in very limited conditions (because this type of operating model generally leads to organizational interests, such as related AML/CFT).
Related to: Europe is preparing to organize Defi in 2026 while Mika leaves a sector to fold
Singapore tightens encryption controls
Recent movements by Singaporean organizers indicate that local authorities intend to maintain a tougher control of the local encryption industry. Today’s announcement showed that the encryption companies that serve customers in Singapore “are already undergoing organization”, so the rules have been expanded to those who serve customers abroad. However, Mas said that all services related to encryption are affected:
“Service providers are not subject to other symbols, such as those used only as interest and governance symbols, to licensing or organizing within the framework of the new system, and therefore they are not affected.”
The organizational transformation in Singapore follows that digital origins are popular in the country. Consciousness of encryption in Singapore has reached the highest level ever, with 94 % of respondents in a recent survey indicating at least knowledge of digital assets.
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