Due to the high risk of money laundering, the Monetary Authority of Singapore (MAS) stipulates that from June 30, a digital token service provider (DTSP) that operates in Singapore but only provides digital payment tokens and capital market product token services to overseas customers must obtain a license issued by the HKMA, otherwise it will be blocked.

In addition, the HKMA also said that operators who provide relevant services to Singapore customers have been included in the supervision, and the relevant licensing regulations have not changed. "Such operators can also provide services to overseas customers in Singapore."

The HKMA added that providing Utility Tokens and Governance Tokens is not within the scope of the new regulations and is therefore not affected.

The HKMA also stated that it has actively contacted businesses who may be affected by the new regulations, explained its policy position, and discussed plans to terminate the activity in an orderly manner. “Based on the available information, we have learned that the number of such service providers is very small.”

Starting from February 14, 2022, the HKMA began to respond to public consultation on related topics, and then continued to convey this position, and in October last year and May this year, it issued documents to elaborate on its position.

The HKMA issued a statement on Friday (June 6) pointing out that the above business model has a high risk of money laundering, and if the related activities mainly occur overseas, it will be difficult for the HKMA to effectively supervise. “Unlicensed such digital token service providers must cease this regulated activity.”