After Singapore’s Web3 Clearance, Invisible Players Surface

"All operations must be ceased before June 30, otherwise criminal penalties will be faced." This statement released by the Monetary Authority of Singapore (MAS) on May 30 dropped a bombshell on the Asian Web3 circle.

Singapore, once known as a "crypto safe haven", now takes a tough stance with a zero transition period and requires all unlicensed Digital Token Service Providers (DTSPs) to withdraw completely.

Sofas at home, shared desks, temporary booths - all of these are included in the broad definition of "business premises" by MAS. As long as an individual or institution engages in digital token-related business in Singapore, whether the service objects are at home or abroad, they must be licensed and compliant, otherwise it may constitute a crime.

This article refers to the front-line observations of a number of local licensed institutions in Singapore (including MetaComp, etc.) during the policy implementation process, and combines the original regulatory text with market feedback to try to rationally restore the policy logic, industry reaction and future direction behind this major cleanup.

We believe that what deserves more attention behind the supervision is how to build a set of On-Chain Financial Markets through blockchain financial infrastructure.

01. Iron-fisted clearance: Singapore’s radical shift in crypto regulatory logic

At the core of this regulatory storm is the Financial Services and Markets Act (FSM Act) passed in 2022, which provides a regulatory framework for digital token services, defines digital tokens, and regulates related activities. In particular, Section 137 of the Act puts an end to Singapore’s history as a “regulatory arbitrage paradise” for crypto assets.

Under this provision, all individuals or institutions that have a place of business in Singapore and provide digital token services to "overseas users" must obtain a DTSP license.

The fundamental reason is that the risk of money laundering is higher in overseas business models, and if their substantive regulatory activities are outside Singapore, MAS cannot effectively supervise such personnel. Therefore, the DTSP license is used to supervise the digital token service business model based in Singapore and serving the world.

On 6 June 2025, MAS further clarified:

From June 30, 2025, DTSPs that only provide services related to “digital payment tokens” and “capital market product tokens” to “outside users” in Singapore will need to obtain a license.

Providers of digital payment tokens or capital market product tokens to "domestic users" in Singapore are already regulated under the PS Act, Securities and Futures Act (SFA), and Financial Advisers Act (FAA), and there is no change in the scope of business they are licensed to conduct. Such service providers can also provide services to "outside users" in Singapore.

Other token-related service providers (such as those used solely as utility and governance tokens) are not licensed or regulated under the new regime and therefore will not be affected.

 (MAS Clarifies Regulatory Regime for Digital Token Service Providers)

The core of the new regulation is the "penetrating supervision" logic, which fully covers Singapore and overseas, aiming at the regulatory arbitrage space of "Based in Singapore, Serving the World". Service providers are required to hold licenses, which marks the official start of MAS's comprehensive supervision of local Web3 practitioners.

MAS’s definition of “digital token services” covers almost all aspects of digital asset business: token issuance, custody services, brokerage matching, transfer payment services, verification and governance services, etc. are all regulated. The following activities are all within the scope of DTSP licensing:

 (Guofeng Observation | One article to understand: A comprehensive review of Singapore’s new DTSP policy (with interpretation of MAS’s June 6 clarification draft)

No license? You have no choice but to leave. MAS clearly stated in its response document that those who do not have a license by then must immediately stop their overseas business; it will not accept the "application in progress" status as the basis for legal existence.

Why is Singapore so determined? The core of the answer lies in the ultimate defense of the country's "financial reputation". MAS repeatedly emphasized in the document that digital token services have strong cross-border anonymity attributes and are easily used for illegal activities such as money laundering and terrorist financing.

Whether it is the Financial Action Task Force (FATF)'s increased requirements for the crypto industry to operate in Singapore to prevent "regulatory arbitrage"; the FTX crash in 2022 caused losses to Singapore's sovereign wealth fund Temasek, which seriously damaged Singapore's financial reputation; and the frequent occurrence of huge money laundering cases, all of these have become direct triggers for policy tightening. If such companies are registered in Singapore and engage in high-risk businesses around the world, once they go bankrupt/run away, Singapore will inevitably bear the global reputation and regulatory collateral effects (global pressure, cherishing feathers).

02. The battle for survival: the difficult choices for crypto companies

As soon as the new regulations came out, Web3 practitioners in Singapore quickly split into different camps.

The founder of a tokenized operating project admitted: "Regulation should serve companies with mature business models and clear structures. For small teams, investing a lot of time and resources in dealing with regulators is almost an unbearable burden." He did not rule out the possibility of moving out of Singapore completely.

Applying for a DTSP license is not an easy task. Companies need to have an initial capital of 250,000 Singapore dollars, a resident compliance officer, establish an independent audit mechanism, submit compliance reports regularly, and meet strict anti-money laundering and anti-terrorist financing requirements. This high threshold has deterred many start-ups.

However, local industry insiders who have lived in Singapore for many years hold a different view: "In fact, Singapore's regulatory policies in the Web3 field in recent years have not undergone a drastic shift, but more of a clarification and refinement of the existing framework."

MAS's regulatory focus is on digital payment tokens and tokens with capital market attributes, while utility tokens and governance tokens are not currently among its regulatory core.

Individual practitioners have become a regulatory gray area. A practitioner who has been deeply involved in OTC trading for many years said: "MAS's current goal is actually to use this wave of regulations to sound a wake-up call to some less standardized KOLs and scattered groups."

Recently, some KOLs and exchange practitioners have chosen to suspend their business, go out for travel or remain on the sidelines.

03. A Tale of Two Crypto Cities: The “Battle for Talent” between Hong Kong and Dubai — Is there really such a thing as a “paradise”?

When Singapore closed its doors, Hong Kong and Dubai opened their arms almost at the same time.

After the new regulations were introduced in Singapore, a member of the Hong Kong Legislative Council directly shouted on the social platform X: "If you are currently engaged in related industries in Singapore and are interested in moving your headquarters and personnel to Hong Kong, I am willing to provide assistance and welcome you to develop in Hong Kong!"

Hong Kong’s appeal is not only in its solicitation. On May 30, 2025, the same day that Singapore issued its new regulations, the Hong Kong Special Administrative Region Government published the Stablecoin Ordinance in the Gazette, officially becoming the world’s first jurisdiction to establish a comprehensive regulatory framework for fiat stablecoins.

The core innovation of the regulations lies in strict access, strong reserves, and guaranteed redemption: issuers are required to apply for a license with a minimum registered capital of HK$25 million; a "100% legal currency reserve + independent custody + monthly audit" regulatory mechanism is implemented; and users are ensured to be able to redeem stablecoins at face value at any time.

At the same time, Dubai is attracting the attention of the world’s crypto community in an unprecedented manner. The popular phrase “Habibi, Come to Dubai” at the TOKEN2049 conference has become a vivid portrayal of Dubai’s competition for crypto talents.

 (Web3 and the flood. Habibi come to Token2049)

Dubai provides a highly competitive tax environment for companies: companies with annual revenues below 3 million UAE dirhams (about $815,000) are exempt from corporate income tax. Dubai has also established the world's first independent digital asset regulator, the Virtual Asset Regulatory Authority (VARA), which is committed to establishing a coherent and progressive regulatory environment.

But can you just open your arms and shout out caring and warm words and then run towards them without any hesitation?

First, the trend of regulatory globalization is becoming more and more obvious. It is impossible for a certain region or country to be independent of the trend and environment of globalization and only enjoy the dividends without complying with the rules. If this is the case, then this country or region will be automatically shielded by regulatory globalization in the never-ending global capital flow, so no one dares to take the risk to unconditionally undertake it.

Secondly, whether it is Web3 or stablecoin, in essence, under the existing system dominated by sovereign financial supervision and sovereign credit currency, they have been pushed from silent passers-by into the spotlight. This is a normal way and result of the absorption of technological innovation and application. It is surprising why so many people express shock and disappointment after seeing or hearing this information.

The whole world still operates on the basis of rules and mutual trust. There is no so-called "utopia" world. Maybe this "utopia" is the ultimate home that some people yearn for. Sorry, not now, not at this moment, not in the "material" world of Crypto!!!

04. Stablecoins and RWA: A Land of Opportunities in the New Regulatory Era - A Game of Changing Cages and Changing Birds

In this regulatory earthquake, stablecoins and real-world asset tokenization (RWA) are becoming the areas with the most development potential.

The stablecoin market is experiencing explosive growth. According to Deutsche Bank data, the total market value of stablecoins was approximately US$20 billion in 2020, and by May 2025 it had soared to US$249.7 billion, an increase of more than 1,100% in five years.

In cross-border payment settlements, the activity of stablecoins continues to rise. Data shows that in the 12 months before May 2024, the payment settlement volume of stablecoins reached about 2.5 trillion US dollars, which is 10 times the payment settlement volume in 2020.

At the same time, RWA (real-world asset tokenization) is becoming the next trillion-dollar market. As of early June 2025, the total value of RWA on the chain was US$23.1 billion (excluding stablecoins), an increase of more than 110% year-on-year.

Globally, the dominance of digital currency "coinage" is becoming the focus of competition among countries. In addition to Hong Kong, countries and regions such as the United States, the European Union, and Africa are also competing fiercely for the dominance of stablecoins.

The United States launched the GENIUS Act, attempting to incorporate stablecoins into the national strategic track to consolidate the dollar's dominant position in the global monetary system; the EU's Crypto Asset Market Regulation Act attempts to redefine the digital financial order with a unified regulatory framework.

05. The moat of local licensees: strategic advantages under the new pattern - rewards for believers

In this regulatory transition, institutions that can overcome high barriers and successfully obtain licenses are gradually building clear barriers to competition. According to the MAS official website, only 33 companies have obtained digital payment token (DPT) licenses, including Coinbase, Circle, Anchorage, DBS Vickers, Matrixport, etc.

With the compliance dividend, Singapore's crypto ecosystem is taking shape, and regional funds and institutions are gathering towards these companies at an accelerated pace. These institutions are no longer just service providers, but "white list" members who have completed identity verification first in the new financial order.

 (X@PANewsCN)

Different from the operating model of some overseas headquarters and Singapore branches such as Coinbase, Circle, and Anchorage, some local Singapore institutions have established a complete compliance and licensing system and are building the next generation of financial infrastructure through blockchain.

This localized and fully compliant path is a great plus for both local businesses and partners who need to do business in Singapore. We found that MetaComp, a licensed institution, is one of them and is a good reference sample.

As a large payment institution (MPI) authorized by MAS, MetaComp not only holds cross-border payment and DPT business licenses, but also, with the support of its parent company Alpha Ladder Finance, has built a comprehensive compliance system covering multiple licenses such as payment, securities, custody, and derivatives.

This architecture includes:

• Large Payment Institution (MPI) license, covering digital token payments and cross-border payment services;
• Recognized Market Operator (RMO) qualification;
• Multiple Capital Market Services (CMS) licenses, including securities trading, derivatives, and collective investment schemes;
• Professional custody license, which can serve traditional capital market assets and asset tokens;
• and independent audit, anti-money laundering (AML), and combating the financing of terrorism (CFT) mechanisms.

The combination of these licenses not only enables it to legally provide stablecoin exchange and digital asset liquidation, but also supports the compliant issuance of real-world asset (RWA) tokens, becoming a very scarce financial infrastructure platform under the new regulatory environment. At the same time, the combination of these licenses also provides guidance for partners to set up operations in Singapore.

It is worth noting that this trend is not limited to Singapore. Looking at the world, regulation is accelerating to extend to stablecoins and RWA. For example, the United States has passed the Senate's "GENIUS Act", attempting to incorporate stablecoins into the national strategic track to strengthen the global dominance of the US dollar; the European Union has also passed the "Markets in Crypto-Assets Regulation Act" (MiCA) to establish a unified regulatory framework. These signals together indicate that future digital financial participants must not only be technologically advanced, but also comply with regulations first.

In this context, compliance itself is becoming a "new scarce resource" with extremely high barriers to entry, especially compliance in the landing market, rather than the licensing of branches. MetaComp has established a cooperative network with licensed institutions around the world and has built a localized settlement foundation in Southeast Asia, the Middle East, Central Asia, Africa and South America. Combined with the self-developed StableX intelligent engine system, through AI and multi-currency path algorithms, it realizes the optimal routing and instant settlement between the US dollar and stablecoins, providing a high-efficiency and low-cost solution for global capital flows under compliance.

On the other hand, Alpha Ladder has started exploring RWA since 2021, and has successively launched projects such as carbon neutral tokens and money fund tokens, building an end-to-end issuance platform from structural design, legal compliance to custody auditing, focusing on serving green finance, traditional securities and cross-border asset chain.

06. Final words

These layouts of MetaComp are not market gimmicks, but strategic constructions based on rigorous compliance and years of practical experience. They not only meet the requirements of regulatory compliance, but also perfectly adapt to the future development trend of stablecoins and asset tokenization.

In the next decade, as the GENIUS Act and the supervision of various countries deepen in parallel, compliance capabilities will become a watershed for the industry. Only those pioneers with pre-licenses, solid payment networks and RWA issuance structures will be able to define the rules and move forward steadily in the new round of global digital financial order.