As 2025 draws to a close, we look back at developments during the year. Singapore’s role as a global digital-asset hub continued to evolve — not just through innovation, but through a sharpening of regulatory discipline. The Monetary Authority of Singapore (MAS) has rolled out a suite of important changes and initiatives that reflect the city-state’s ambition to balance growth, stability, and integrity in the digital-asset sector.

1. The Digital Token Service Provider (DTSP) Regime

The most significant regulatory shift came with MAS’s enforcement of its Digital Token Service Provider (DTSP) licensing regime. As of 30 June 2025, any company incorporated in Singapore that offers digital token services exclusively to overseas clients must secure a DTSP license — or cease operations. MAS has clarified that it will generally not grant these licenses, citing money-laundering and supervisory risks associated with cross-border business models. The bar is set deliberately high, where minimum capital requirements, stronger AML/CTF obligations, and ongoing supervision are all part of the regime.

2. Tokenisation, CBDC, and Stablecoins — Building the Infrastructure

Despite the regulatory tightening, MAS is simultaneously pushing hard on tokenisation, central bank digital currency (CBDC), and regulated stablecoins. At the Singapore FinTech Festival (SFF) 2025 held in November, the following key highlights were outlined:

• MAS announced expanded trials under its BLOOM initiative. This includes experiments on tokenised bank liabilities and regulated stablecoins for settlements.
• Three major banks — DBS, OCBC, and UOB — successfully conducted interbank overnight lending transactions using a live wholesale Singapore-dollar CBDC. Looking ahead, MAS plans to issue tokenised MAS bills, which will be settled using its CBDC.
• On the regulatory front, MAS is preparing stablecoin legislation, emphasising sound reserve backing and redemption reliability. On 30 September, Singapore launched its first ever Singapore dollar-back stablecoin on Coinbase, the largest US-based crypto exchange.

Tokenisation and CBDC trials suggest MAS is laying the groundwork for a future where financial assets are natively digital.

3. Industry Engagement

Regulations aside, 2025 also saw activity on the community and industry front. The Digital Assets Association (DAA) Singapore launched its inaugural Digital Assets Summit on 30 September 2025, bringing together key stakeholders — regulators, banks, crypto firms, legal experts — to discuss tokenisation, real-world assets (RWA), DeFi, and the global regulatory landscape.

4. Reputational Risks & Enforcement

While the regulatory environment tightens, challenges remain — particularly around illicit financial activity and reputational risk. US and UK authorities recently exposed a transnational cyberscam syndicate that used Singapore-based companies to launder money. These revelations could test the effectiveness of Singapore’s AML and due-diligence frameworks, especially as digital assets become more deeply integrated into the financial system.

As criminal actors exploit digital asset channels, Singapore needs to maintain robust AML/CFT systems to protect its financial ecosystem and reputation.