Singapore continues to demonstrate global leadership in maintaining a safe and trusted online financial environment. The Monetary Authority of Singapore (MAS), working closely with the Singapore Police Force (SPF), has taken significant steps to protect the public from unregulated trading activity and to enhance safeguards across the rapidly evolving online trading landscape.

A key pillar of this effort is MAS' new regulatory framework for Digital Token Service Providers (DTSPs), which comes into effect on 30 June 2025. This framework sets clear expectations for licensing, supervision and compliance for entities providing digital token services outside of Singapore but operating from within its borders. These services may involve digital payment tokens or tokens representing capital market products.

The rationale for this stringent approach is clear. Due to the cross-border and internet-based nature of such services, DTSPs are more susceptible to being misused for illicit activities, including money laundering and terrorism financing. MAS has been explicit that licences under this framework will be granted only in extremely limited cases. This helps protect Singapore's financial reputation while ensuring firms are held to international standards of regulatory oversight, risk management and consumer protection.

Importantly, the framework also reinforces MAS' broader commitment to technology risk management and cyber hygiene. DTSPs will be expected to comply with rigorous requirements, including robust internal controls, audit procedures and minimum capital thresholds. These measures ensure that firms operating in this space are equipped to manage technological disruptions and cyber threats effectively, safeguarding both customers and financial systems.

In tandem with the implementation of the DTSP regime, Singapore continues its vigilant efforts to curtail unlicensed trading platforms. Working under the Securities and Futures Act (SFA), MAS and SPF actively investigate platforms that target Singapore residents without proper authorisation.

If such platforms are found to breach the law, access to their websites is blocked under the Internet Code of Practice, preventing local users from engaging with or falling victim to unregulated financial services.

Singapore's authorities are also proactive in educating the public. Consumers are encouraged to verify the legitimacy of any online trading platform through MAS' Financial Institutions Directory, which lists all entities licensed to deal in capital markets products and services. Regulated platforms are required to meet strict conduct and disclosure requirements, helping users make informed decisions and protecting them from unauthorised charges or misrepresentations.

MAS’ vigilance is complemented by measures that ensure robust compliance with anti-money laundering and counter-terrorism financing (AML/CFT) obligations. All licensees must have a suitably qualified compliance officer, develop sound internal processes and implement customer due diligence procedures to mitigate risks effectively. These practices ensure that Singapore remains aligned with international standards set by the Financial Action Task Force (FATF).

In addition, MAS is committed to ongoing consultation with industry stakeholders. The development of the DTSP framework followed a comprehensive public consultation process, with the Authority taking on board valuable feedback to refine its regulations. This collaborative approach ensures the regulatory environment remains both robust and responsive to technological and business model changes.

Singapore’s approach also recognises the importance of clear communication and public awareness. Platforms are required to disclose risks and avoid misleading representations of their licensing status. Inaccurate or deceptive statements are subject to enforcement and licensees must act swiftly to correct any public misunderstandings.

Through clear legislation, decisive enforcement and strong inter-agency coordination, Singapore is reinforcing its position as a secure, transparent and globally respected financial hub. The actions of MAS and SPF underscore the Republic’s enduring commitment to responsible innovation, market integrity and public trust.

As the financial ecosystem continues to digitise and expand, Singapore remains steadfast in its mission to ensure online trading platforms are safe, well-regulated and aligned with global standards.