- Deadline set, firms must comply or exit.
- Retail and institutional impacts predicted.
- Focus on BTC, ETH, related assets.
Singapore’s Monetary Authority imposes a June 2025 deadline for offshore crypto firms to secure licensing, driven by past collapses like 3AC and Terraform.
The event highlights Singapore’s proactive regulatory stance following significant failures, impacting crypto markets and investor confidence.
Monetary Authority of Singapore (MAS) mandates that by June 2025, offshore firms must comply with strict licensing. The collapse of 3AC
and Terraform Labs catalyzed this move. This marks a shift in regulatory approach, aiming to prevent future financial disruptions.
Affected firms include those dealing with major cryptocurrencies like BTC
and ETH. The deadline urges firms to secure licenses or cease operations. Industry experts see this as a severe regulatory shift to stabilize markets and protect investors.
Patrick Tan, General Counsel, ChainArgos, stated, “This is almost as good as an evacuation procedure.”
The crackdown potentially impacts market flows and local crypto exchanges. Regulators aim to avert widespread financial repercussions. The strident licensing requirements follow significant financial losses attributed to past high-profile firm failures, affecting confidence and transactional flows.
Regulatory changes could trigger declines in local exchanges’ liquidity and international collaborations. Historical data suggests shifts in market dynamics, with regulatory frameworks potentially influencing technological advancements and financial strategies.
