Singapore Digital Asset Regulatory New Rules: Industry Reshuffle and Future Opportunities

On May 30, the Monetary Authority of Singapore (MAS) issued a statement that sent shockwaves through the Asian Web3 community, requiring all unlicensed digital token service providers to cease all operations by June 30. This tough stance marks a significant shift in Singapore's cryptocurrency regulatory policy.

The core of the new regulations is the "penetrative supervision" logic, which comprehensively covers both domestic and overseas businesses in Singapore. Service providers, regardless of whether they face domestic or overseas users, must operate with a license. This means that MAS's comprehensive regulation of local Web3 practitioners has officially begun.

The regulatory scope covers all aspects of digital asset business, including token issuance, custody, trading, payment, and so on. Institutions that fail to obtain a license in a timely manner must immediately cease related activities, and MAS does not accept "under application" as a basis for legal operations.

The core reason for this policy shift lies in Singapore's extreme emphasis on its national financial reputation. The cross-border anonymity of digital token services increases the risk of illegal activities such as money laundering. A series of negative events, including the FTX incident, has also accelerated the tightening of regulations.

After the new regulations were introduced, Web3 practitioners quickly began to differentiate. Some startups are considering withdrawing due to the difficulty of bearing high compliance costs. However, there are also industry insiders who believe that this is more about clarifying and refining the existing framework rather than a drastic shift.

At the same time, Hong Kong and Dubai are actively attracting digital asset companies. Hong Kong has launched the world's first comprehensive regulatory framework for fiat-backed stablecoins, while Dubai offers a highly attractive tax environment. However, considering global regulatory trends, these regions also find it difficult to become completely regulatory arbitrage havens.

In the new regulatory environment, stablecoins and the tokenization of real-world assets (RWA) have become the most promising areas. The market capitalization and settlement volume of stablecoins have shown explosive growth in recent years, and RWA is also expected to become the next trillion-dollar market.

For institutions that successfully obtain a license, the new rules create significant competitive barriers. Currently, only 33 companies have obtained digital payment token licenses, including well-known institutions such as Coinbase and Circle. Regional funds are accelerating their concentration toward these compliant enterprises.

Some local institutions, such as MetaComp, have established a comprehensive compliance system covering multiple areas including payment, securities, and custody. This comprehensive compliance path lays a solid foundation for future development and provides guidance for other companies.

As global regulations extend to stablecoins and RWA, compliance capability is becoming a key watershed in the industry. Institutions with prior licenses, robust payment networks, and RWA issuance structures are expected to gain an advantage in the new round of global digital financial order.