Singapore's Crypto Crackdown Reveals Hidden Players, Asia-Pacific Payment Landscape Turns Into a Rashomon
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Singapore's Crypto Crackdown Reveals Hidden Players, Asia-Pacific Payment Landscape Turns Into a Rashomon
In the new landscape, strategic advantages come at the cost of trust, yet also present opportunities for first movers.
Navigating Web3 tides with focused insightsBy MetaComp
"All operations must cease by June 30, or face criminal penalties." This statement issued by the Monetary Authority of Singapore (MAS) on May 30 sent shockwaves through Asia's Web3 community.
Singapore, once hailed as a "crypto haven," is now taking a hardline stance with zero transition period, requiring all unlicensed Digital Token Service Providers (DTSPs) to fully withdraw. Sofas at home, shared work desks, temporary booths—these are all included under MAS’s broad definition of “place of business.” Anyone operating within Singapore providing digital token services, regardless of whether clients are domestic or overseas, must be licensed and compliant; otherwise, it constitutes a criminal offense.
This article draws on firsthand observations from several local licensed institutions (including MetaComp), combining regulatory texts and market feedback to rationally reconstruct the policy logic, industry response, and future direction behind this sweeping crackdown. We believe that beyond regulation lies a deeper transformation—one of financial infrastructure and trust mechanisms being fundamentally restructured.
01 Iron-Fisted Cleanup: A Complete Shift in Singapore’s Regulatory Logic
The core of this regulatory storm is Section 137 of the Financial Services and Markets Act (FSM Act), which ends Singapore’s history as a "regulatory arbitrage paradise." Under this provision, any individual or entity based in Singapore offering digital token services to overseas clients must obtain a DTSP license.
The new rules embody a "penetration-style" regulatory approach, marking the formal start of comprehensive oversight by MAS over local Web3 players. The MAS definition of "digital token services" covers nearly every aspect of crypto activity: token issuance, custody, brokerage and trading, transfer and payment services, validation, and governance—all fall under regulation.
No license? Then exit immediately. MAS clearly states that those not yet licensed must stop serving international clients right away—and pending applications do not qualify as legal grounds for continued operation.
Why such decisiveness? At its heart lies an extreme commitment to protecting national "financial reputation." The FTX collapse in 2022 caused losses to Temasek, Singapore’s sovereign wealth fund, severely damaging the country’s financial credibility and directly triggering tighter policies.
MAS repeatedly emphasizes in documents that digital token services have strong cross-border anonymity, making them highly susceptible to money laundering and terrorist financing. If companies based in Singapore get into trouble, the nation will face global scrutiny and regulatory backlash.
02 Fight for Survival: Crypto Firms Face Tough Choices
Following the announcement, Web3 practitioners in Singapore quickly diverged into different camps.
The founder of a tokenized project admitted: "Regulation should serve mature business models with clear structures, but for small teams, dedicating significant time and resources to compliance is almost unbearable." Some may consider relocating entirely out of Singapore.
Obtaining a DTSP license is no easy feat. Companies must have S$250,000 in initial capital, appoint a resident compliance officer, establish independent audit mechanisms, and meet strict anti-money laundering (AML) and counter-terrorist financing (CFT) requirements—a high barrier for startups.
Yet seasoned local professionals offer a different perspective: "Singapore hasn’t undergone a drastic shift in Web3 policy recently—it’s more about clarifying and refining existing frameworks."
MAS primarily focuses on digital payment tokens (DPTs) and tokens with capital market characteristics. Utility tokens and governance tokens currently remain outside the core scope of regulation.
Individual operators occupy a gray area. A veteran OTC trader noted: "The current move seems aimed at sending a warning to less-regulated KOLs and loosely organized groups."
Recently, some KOLs and exchange operators have chosen to pause operations, go on vacation, or simply wait and see.
03 Tale of Two Cities: Hong Kong and Dubai’s Talent Grab—Is There Really a ‘Shangri-La’?
As Singapore closes its doors, Hong Kong and Dubai have simultaneously opened theirs.
Shortly after Singapore’s new rules were announced, a Hong Kong legislative councilor publicly invited affected parties via social media platform X: "If you're currently working in this industry in Singapore and considering relocating your headquarters and team to Hong Kong, I’m happy to assist. Welcome to develop in Hong Kong!"
Hong Kong’s appeal goes beyond rhetoric. On May 30, 2025—the very same day Singapore unveiled its regulations—the Hong Kong Special Administrative Government published the Stablecoin Ordinance in the Gazette, becoming the first jurisdiction globally to establish a comprehensive regulatory framework specifically for fiat-backed stablecoins.
The ordinance introduces key innovations: strict licensing (minimum capital requirement of HK$25 million), mandatory full fiat reserves held in independent custody, monthly audits, and guaranteed redemption at par value for users.
Meanwhile, Dubai is attracting global crypto attention like never before. The popular phrase at TOKEN2049—"Habibi, Come to Dubai"—has become a vivid symbol of Dubai’s campaign to attract crypto talent.
Dubai offers highly competitive tax conditions: enterprises with annual revenue below AED 3 million (approx. USD 815,000) are exempt from corporate income tax. It also established VARA—the world’s first independent digital asset regulator—dedicated to building a coherent and progressive regulatory environment.
But can one really move there without hesitation just because they’re welcomed warmly? The author expresses serious doubts. First, global regulatory convergence is accelerating. No region can isolate itself from global trends, enjoying benefits while ignoring rules. Any jurisdiction attempting this would automatically be excluded from the continuous flow of global capital. Second, whether it’s Web3 or stablecoins, these technologies have suddenly moved from obscurity into the spotlight under the existing system dominated by sovereign financial regulation and fiat currencies—an inevitable outcome when innovation gets absorbed into mainstream systems. The author is surprised by how many people still react with shock and disappointment upon hearing this. The world continues to operate on rules and mutual trust. There is no such thing as a "utopia." Perhaps some imagine such a perfect haven—but sorry, not now, not today, not in the material world of crypto!!!
04 Stablecoins and RWA: The Opportunity Zone in a New Regulatory Era—The Game of Swapping Cages
In the midst of this regulatory earthquake, stablecoins and real-world asset tokenization (RWA) are emerging as the most promising fields.
The stablecoin market is experiencing explosive growth. According to Deutsche Bank data, total stablecoin market cap was around $20 billion in 2020 and had surged to $249.7 billion by May 2025—an increase of over 1100% in five years.
Stablecoin usage in cross-border payments continues to rise. Data shows that in the past 12 months alone, settlement volume reached $2.5 trillion—ten times higher than in 2020.
At the same time, RWA (real-world asset tokenization) is shaping up to become the next trillion-dollar market. As of early June 2025, the total on-chain value of RWAs (excluding stablecoins) stood at $23.1 billion, up more than 110% year-on-year.
Globally, control over the "minting rights" of digital currencies has become a focal point of competition among nations. Beyond Hong Kong, countries and regions including the United States, the European Union, and Africa are fiercely competing for dominance in stablecoin regulation.
The U.S. introduced the GENIUS Act aiming to bring stablecoins into its national strategy to reinforce the dollar’s global dominance; the EU’s Markets in Crypto-Assets Regulation (MiCA) seeks to redefine digital finance through a unified regulatory framework.
05 The Licensed Advantage: Strategic Edge in a New Landscape—Trust Comes at a Price, But Offers First-Mover Opportunities
In this regulatory turning point, institutions capable of clearing high barriers and securing licenses are gradually building clear competitive moats. According to the MAS official website, only 33 companies have so far obtained Digital Payment Token (DPT) licenses—including Coinbase, Circle, and MetaComp.
These firms are no longer mere service providers—they are now verified "whitelisted" members in the emerging financial order. MetaComp is one such example. As a MAS-authorized Major Payment Institution (MPI), MetaComp holds licenses for cross-border payments and DPT services. Backed by its parent company Alpha Ladder Finance, it has built a comprehensive compliance ecosystem spanning payments, securities, custody, derivatives, and more.
This structure includes:
• Major Payment Institution (MPI) license covering digital token and cross-border payment services;
• Recognized Market Operator (RMO) status;
• Multiple Capital Markets Services (CMS) licenses, including dealing in securities, derivatives, and collective investment schemes;
• Professional custody license enabling servicing of both traditional financial assets and tokenized assets;
• Independent auditing, anti-money laundering (AML), and counter-terrorist financing (CFT) systems.
This combination allows MetaComp not only to legally provide stablecoin exchange and digital asset clearing, but also to support compliant issuance of real-world asset (RWA) tokens—making it a rare and valuable financial infrastructure platform under the new regulatory regime.
Notably, this trend extends beyond Singapore. Globally, regulation is rapidly expanding into stablecoins and RWA. For instance, the U.S. launched the GENIUS Act in 2024 to integrate stablecoins into national strategy and strengthen the dollar’s global position; the EU enacted MiCA to create a unified regulatory framework. Together, these signals indicate that future participants in digital finance must not only be technologically advanced—but compliance-first.
Under this backdrop, compliance itself is becoming a highly scarce resource. MetaComp has formed partnerships with globally licensed institutions, establishing localized settlement networks across Southeast Asia, the Middle East, Central Asia, Africa, and South America. Leveraging its proprietary StableX intelligent engine—powered by AI and multi-currency routing algorithms—it enables optimal routing and instant clearing between USD and stablecoins, delivering efficient, low-cost solutions for compliant global capital flows.
On the other hand, Alpha Ladder has been exploring RWA since 2021, launching projects such as carbon neutrality tokens and money market fund tokens. It has developed an end-to-end issuance platform covering structural design, legal compliance, and custody auditing, focusing on green finance, traditional securities, and cross-border asset tokenization.
These initiatives are not marketing gimmicks, but strategic moves grounded in rigorous compliance and years of practical experience. Over the next decade, as the GENIUS Act and similar regulations deepen worldwide, compliance capability will become the industry’s dividing line. Only pioneers equipped with preemptive licensing, robust payment networks, and proven RWA issuance frameworks will be positioned to define rules and move forward steadily in the next phase of global digital finance.
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