MAS enforces order on DTSPs; Australia ups crypto ATM rules

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The Monetary Authority of Singapore (MAS), the country’s central bank and chief financial regulatory authority, has set a deadline of June 30 for local digital asset service providers to stop offering services to overseas markets.

The measure came as part of a May 30 response that the regulator published to a consultation on its proposed regulatory framework for ‘Digital Token Service Providers (DTSPs).’

The framework falls under Singapore’s Financial Services and Markets Act of 2022 (FSMA), which was passed in April 2022 and split the licensing of DTSPs into those that provide services in Singapore and those that target offshore clients. The former have to be licensed in accordance with the Payment Services Act, which has been in place for some time, while the latter fall under the FSMA, which will come into force at the end of June.

The delay in the implementation of the FSMA licenses—for digital asset firms that target foreign clients—created concerns for MAS around the potential reputational impact on Singapore, where companies register in the country for tax purposes but don’t provide services within Singapore or have a physical presence. Another concern for the regulator was that if a company’s main operations are outside of Singapore, it may be harder for MAS to exercise oversight, opening the door to increased money laundering.

Therefore, in response to the consultation on its proposed regulatory approach—which was started by MAS back in October 2024—the regulator said that any Singapore-incorporated company, individual, or partnership that provides digital asset services outside Singapore must either cease operations by the end of June when the DTSP provisions come into force or obtain a license by the same date. 

However, these FSMA licenses may not be easy to come by for those local digital asset firms wanting to serve foreign clients, as MAS clarified that there were “extremely limited circumstances under which MAS will consider granting an applicant a licence.”

The regulator also stated that no transitional arrangements will be made for local DTSPs providing services abroad; companies must comply by June 30 or cease operations.

Those who violate the laws will be subject to substantial fines of up to SGD 250,000 (US$200,000) and imprisonment of up to three years. 

The move closes a concerning regulatory gap for the regulator and signals a tightening of oversight on digital asset activity by Singapore’s authorities.

But Singapore was not the only country tightening its digital asset rules this week, with Australian authorities announcing new measures to crack down on crypto ATM scams.

Australia rolls out new digital asset ATM rules in the wake of rising scams

Australia’s national financial intelligence agency has rolled out new operating rules and transaction limits for crypto ATM operators, just as federal police note that kiosk scams are on the rise.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) is imposing a AUD5,000 (US$3,250) limit on cash deposits and withdrawals on crypto ATMs, as well as scam warning signs, more robust transaction monitoring, and enhanced customer due diligence obligations, the agency said in a June 3 press release.

“The taskforce has uncovered disturbing trends which have confirmed that cryptocurrency ATMs are being used for scam/fraud-related transactions,” said AUSTRAC CEO Brendan Thomas, on Tuesday. “In light of the risks and harms, we consider it absolutely necessary to ensure the sector meets minimum standards and reduces the criminal misuse of crypto ATMs.”

He added that the new conditions “are designed to help protect individuals from scams by deterring criminals from directing them to a crypto ATM, as well as to protect businesses from criminal exploitation.”

However, according to Thomas, the new rules are not set in stone, as he indicated that the agency would “keep the effectiveness of these conditions under review, and adjust if needed.”

While the new AUD5,000 (US$3,250) cash limits only relate to crypto ATM providers, AUSTRAC said it expects digital currency exchange providers to “consider imposing similar limits if they accept cash for crypto transactions.”

A growing problem

The same day AUSTRAC announced its new crypto ATM measures, the Australian Federal Police (AFP) revealed that the country’s online cybercrime reporting system, ReportCyber, received 150 unique reports of scams involving crypto ATMs between January 2024 and January 2025.

The AFP said that total losses exceeded AUD3.1 million (US$2 million), which it added “may be just the tip of the iceberg.”

AFP Commander Graeme Marshall said many of those scammed through crypto ATMs don’t realize they’re victims, don’t know how to report the crime, or “feel embarrassed because they were scammed.”

“Scammers often use sophisticated tactics to elicit funds from victims. We would encourage people to share their stories with family and friends to raise awareness and help prevent others from falling victim,” said Marshall.

After a slow start, crypto ATM adoption has increased rapidly in Australia over the past few years.

According to AUSTRAC, there are almost 150,000 crypto ATM transactions annually in the country, with about AUD275 million ($177 million) moving through them using cash to buy Bitcoin, Tether , and Ether.

“In just two years, the number of crypto ATMs in Australia increased more than 15 times, from just 23 operating in 2019, 60 in 2022, to more than 1,200 in 2024. There are now upwards of 1,800 active crypto ATMs,” said the agency.

The new measures introduced by AUSTRAC hope to make this growing market a safer space and further curb crypto crime in Australia.

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