Singapore Encryption Asset Regulation Upgrade: DTSP New Regulations Officially Take Effect

On June 30, 2025, Singapore's Financial Services and Markets Act (FSM Art) will officially come into effect, marking the formal implementation of the new regulations for DTSP. This move is seen as a significant milestone in Singapore's regulation of encryption assets, comparable to Singapore's "9.24 moment." The implementation of the new regulations means that unlicensed projects and practitioners will face a new round of adjustments and migrations.

Main Content of DTSP New Regulations

DTSP ( Digital Token Service Providers ) refers to entities providing digital token services, and the new regulations mainly target entities engaging in encryption asset business within Singapore.

scope of application

1. Individuals or legal entities conducting business within Singapore
2. Companies registered in Singapore that provide digital token services to overseas clients

It is worth noting that the definition of "operating in Singapore" is very broad; as long as the actual presence is within Singapore, whether it is through physical storefronts or online, conducting encryption asset business falls under the regulatory scope.

regulated business

The new DTSP regulations cover transactions and financial activities related to encryption assets, mainly including:

• Digital Token Trading
• Digital Token Custody
• Digital Token Exchange Operation
• Digital Token Issuance
• Digital Token Transfer Service

Exempt Business

Some marginal technology support services are not within the scope of regulation, such as:

• Pure data storage
• Authentication
• Network communication
• Non-critical technical support

Impact of New Regulations and Industry Response

The implementation of the new regulations means that unlicensed encryption asset projects and practitioners will face a new round of adjustments. Although the Financial Services and Markets Bill was announced as early as 2022 and provided a 3-year transition period, the industry has not given it enough attention, leading to the current situation of sudden response.

In the face of the new regulatory environment, industry insiders may consider relocating their business to other regions that are more friendly to encryption assets. Southeast Asian countries such as Thailand, Vietnam, Malaysia, and the Philippines have shown a relatively open attitude towards encryption assets in recent years, and may become new target locations. In addition, the Middle East regions like Dubai and Abu Dhabi are also favored by some practitioners due to their flexible capital flow policies.

Conclusion

The trend of compliance for encryption assets is accelerating globally. For businesses and individuals who wish to develop long-term in the industry, emphasizing compliance construction and early layout of relevant licenses will become increasingly important. The implementation of the new DTSP regulations in Singapore is another clear signal of this trend and provides a reference for regulatory policies in other countries and regions.