Singapore Web3 Regulatory Changes: Invisible Players Surface

Since the Monetary Authority of Singapore (MAS) issued a statement on May 30 requiring unlicensed digital token service providers to withdraw completely, the Asian Web3 space has been shaken. This tough stance marks a significant shift in Singapore's regulatory policy.

The core of this regulatory reform is the Financial Services and Markets Bill passed in 2022, particularly its Article 137. This provision requires all individuals or institutions with a place of business in Singapore that provide digital token services to overseas users to obtain a DTSP license. This requirement aims to address the high money laundering risks in cross-border operations and ensure that MAS can effectively regulate these service providers.

MAS's definition of "digital token services" almost encompasses all aspects of digital asset operations, including token issuance, custodial services, brokerage matching transactions, transfer payment services, as well as verification and governance services. The new regulations adopt a "layered regulatory" logic, fully covering both domestic and overseas operations in Singapore, aiming to eliminate regulatory arbitrage opportunities.

This policy shift reflects Singapore's high regard for its national financial reputation. Recent global increases in anti-money laundering requirements, the impact of the FTX incident on Singapore's sovereign wealth fund, and the frequent occurrence of large-scale money laundering cases have all become significant factors driving the tightening of policies.

In response to the new regulations, Web3 practitioners have varied reactions. Some small project teams indicate they may consider relocating from Singapore, while some local industry insiders believe this is more about clarifying and refining the existing framework. It is worth noting that utility tokens and governance tokens are currently not within the core regulatory scope of the MAS.

At the same time, Hong Kong and Dubai are actively attracting cryptocurrency companies and talent. Hong Kong has launched the world's first comprehensive regulatory framework for fiat-backed stablecoins, while Dubai offers an attractive tax environment and a dedicated digital asset regulatory authority. However, the consistency of global regulatory trends means there is no real regulatory "safe haven."

In this regulatory transformation, stablecoins and the tokenization of real-world assets (RWA) show great potential. The global market capitalization of stablecoins has surpassed $240 billion, while the total value of on-chain RWAs has also reached $23 billion. Countries are in fierce competition for the "minting rights" of digital currencies.

For institutions that have successfully obtained a license, the new regulatory environment provides a clear competitive advantage. Currently, only 33 companies have obtained a Digital Payment Token (DPT) license, including some well-known international firms. Some local institutions, such as MetaComp, have established a comprehensive compliance licensing system covering multiple areas including payments, securities, custody, and derivatives.

In the future, as global regulatory trends deepen, compliance capabilities will become a key watershed for the industry. Institutions that possess pre-licenses, solid payment networks, and RWA issuance structures are expected to gain an advantage in the new round of global digital financial order.