Singapore’s changes in the eyes of 5 Web3 practitioners

Interview, arrangement: Louis ,ChainCatcher

2025year6month30Day is written in Po CountyWeb3

From this day on, according to Section 137 of Singapore's Financial Services and Markets Act (FSMA): All individuals or companies that provide digital token-related services, as long as they have a place of business in Singapore, regardless of whether the service recipients are in Singapore, must obtain a Digital Token Service Provider (DTSP) license, otherwise they will face criminal liability.

The Monetary Authority of Singapore (MAS) clearly stated in the regulatory response document released on May 30: Those who have not yet obtained a license must immediately cease their overseas business; and the status of "pending application" will not be accepted as the basis for legal existence. This wording was interpreted by many as "the strictest encryption regulation in history." In this regard, ChainCatcher consulted professional lawyers about the key points that were overlooked in this FSMA document. In addition, we also interviewed 5 practitioners based in Singapore, trying to restore the real situation of Web3er in Singapore and understand their views on the regulatory changes in Singapore.

Note: In this article, MAS is Singapore's financial regulator, PSA is an early law launched in 2019 that specifically regulates encrypted payment services, and FSMA is The new and more comprehensive regulatory bill launched in 2022 has added the management of token-related services. DTSP refers to individuals or companies that provide token trading, custody, transfer and other services, and is the focus of supervision by FSMA.

1. Overlooked key points of the bill

During the interview with Guo Yatao, lawyer and director of the Digital Economy Committee of Beijing Strategy Law Firm, we found the following contents of the bill that are worthy of readers' attention:

1. FSMA

It is not an overseas patch, but a comprehensive upgrade, and both domestic and overseas businesses are subject to constraints.

Many people in the industry mistakenly believe thatFSMAis just to fill the loopholes in the services provided by Singapore companies to overseas customers that the original Payment Services Act (PSA) failed to regulate. However, Lawyer Guo emphasized:"FSMA" is a framework law for overall supervision

to bypass the traditional institutional licensing framework, directly intervene in and isolate high-risk personnel in the financial market, and achieve penetrating supervision of people. ” This means that even non-management freelancers, remote developers, consultants or KOLs, as long as they provide related services in Singapore, may be identified as regulatory targets by MAS.  “Requires a full understanding ofFSMAframework and relevant working experience” , thereby greatly raising the threshold for individuals to enter the industry. The thresholds for

3and FSMAhave been significantly raised, and the compliance requirements far exceed those of PSA

even if you already hold a PSAlicense, it cannot be automatically used universally. Lawyer Guo pointed out: “Currently, most of the approved encryption business licenses on the market are still issued based on PSA, which significantly raises the compliance threshold of FSMA. MAS clearly stated that even companies that have obtained PSA licenses need to resubmit supplementary materials to meet FSMA requirements.” lang="ZH-CN">requirements. ” To apply for a DTSPlicense, not only must you have an initial capital of 250,000 SGD and a resident compliance officer, you must also establish an independent audit mechanism, submit compliance reports regularly, and meet the anti-money laundering and anti-terrorist financing processes and supporting management systems.

Second, let’s see what Web3 practitioners in Po County say?

From wide coverage to more detailed requirements to higher thresholds, the tightening of supervision has indeed caused a lot of pressure and panic for

Web3er

.

From wide coverage to more detailed requirements to higher thresholds, the tightening of supervision has indeed caused a lot of pressure and panic for

Web3er

.< In the interview with ChainCatcher, we also heard completely different voices - from the startup team that had to move away, to the individual workers who chose to wait and see, to the old immigrants who are still optimistic about the long-term potential of Singapore, their stories pieced together a real picture of the implementation of policies:

1、Chari, founder of the tokenized operation project leaf="">：Small businesses have their own way of survival, and the river will always find a way out

We have indeed been affected. In the current cryptocurrency circle, almost all meaningful products cannot avoid the core oftransactions. And once transactions are involved, they will inevitably touch theDTSPregulatory red line. Supervision should serve companies with mature business models and clear structures, but for a small team like us, investing a lot of time and resources in dealing with supervision is almost an unbearable burden.

It is obvious that Singapore is no longer suitable for the development of start-up projects. Perhaps Singapore has never thought about becoming a cradle for start-ups. They only want to be the headquarters of mature companies. We are not even sure what the business will look like next month, and we do not rule out the possibility of moving out of Singapore in the future. However, I will face the changes with an optimistic attitude. After all, "small businesses must have their own way of survival." 2. A geek boy (pseudonym) who has been deeply engaged in OTC transactions for many years: Singapore is a “pragmatic scumbag”. Whoever has value will stay. I feel that the Web3 industry has always been somewhat excluded, whether it was driven away by China before or is currently marginalized by small businesses in Singapore. But objectively speaking, as a practitioner who has been engaged in OTC business in Singapore for many years, I have always felt that pragmatism is the underlying color of Singapore's supervision. To put it bluntly, the Singapore government is like a "pragmatic scumbag": whoever can bring substantial value can stay; whoever just brings bubbles will be appropriately sent away. Those who have been issued licenses can continue to do business, and others must be cleared out. This is a very clear signal.

However, from my point of view, this regulation is not so iron-fisted, more like "loud thunder, little rain", mainly to scare the tiger. The companies that really need licenses have already applied for them. Those bosses who have contributed to the government or are truly capable will not be anxious about this round of new regulations.

As for why the regulation has suddenly tightened, I think it has something to do with the gray industry and shell companies in the cryptocurrency circle in Southeast Asia. MASnow aims to use this wave of regulations to sound a warning to some less standardizedKOLand scattered groups. They may not be able to completely eliminate these people, but they hope to use the legal framework to force them to be more restrained.

As far as I know, someKOLand exchange practitioners have recently chosen to suspend their business, go on a trip, or wait and see. Everyone is waiting for a clearer signal. 3. John, a practitioner who has been working in the field of Web3 AI in Singapore for many years: See the essence through the phenomenon, and there must be a cause and effect. I want to emphasize one word: pragmatic. This is my core understanding of Singapore's governance style. Singapore's efficiency and adherence to rules are essentially to protect economic benefits and strive for a stable position in international political and financial games. The regulatory terms are becoming more stringent this time, in fact, because there are some problems in the field of Web3 that need to be addressed, and the government must intervene to ensure the healthy development of the ecosystem. My project has not been directly affected at present, but I can see that this round of policy adjustments has indeed brought a considerable impact on some exchanges that have not yet obtained licenses, as well as the project parties and ecological partners that cooperate with them. Especially for those KOLs who play the role of financial advisors in the Web3 circle, the pressure of the policy has been transmitted to them and has played a certain deterrent role. Recently, I have also noticed that more and more freelancers and remote workers are beginning to prefer to work from home and avoid actively discussing Web3 related topics in public. Everyone is trying to reduce risks and unnecessary troubles.

4, life in slope is close 20 year Reddio FounderNeil: Nothing has changed,Web3is still part of Singapore's national strategy

In fact, Singapore's regulatory policies in the Web3 field in recent years have not seen a drastic shift, but have been more about clarifying and refining the existing framework. According to the latest clarification by MAS and the report of Lianhe Zaobao, the focus of this regulation is on digital payment tokens (DPTs) and tokens with capital market attributes, while the utility tokens (Utility Tokens) and governance tokens (Governance Tokens) that we often talk about are not currently among the core of its regulation.

For most startups, Singapore is still an environment with clear systems, clear paths and abundant resources. MAS not only maintains high transparency in the long term, but also has an open consultation mechanism. It is not difficult for companies to assess their compliance. Legal advice can be obtained for a few thousand Singapore dollars, and the cost is reasonable.

From a longer-term perspective, Web3is still part of Singapore's national strategy. In addition to a clear policy framework, the government also promotes ecological development through various means such as financial support, talent cultivation, and industry alliances. The Singapore Ministry of Education also strongly encourages universities to offer blockchain courses. I personally always believe that if you want to find a place that can truly balance regulatory rationality and industrial vitality, Singapore is still the most inclusive and trustworthy choice for entrepreneurs around the world.

5,GM Agents FounderChess: It is a period of reshuffle, but it targets the financial direction rather than everyone

For us, the current regulatory changes have not brought a significant impact. We areAI

. leaf="">Startups still plan to stay in Singapore for continued construction. I think this round of regulation is more targeted at companies and projects with strong financial attributes, and for small teams like us, the actual impact is relatively limited. The big companies in the currency circle have not had any problems yet, so it is not the turn of small teams to worry.

Speaking of Singapore's entrepreneurial environment, I have always felt that it is very suitable for small teams or even individual entrepreneurship. Especially for overseas Chinese like me, Singapore has a natural affinity in language and culture, low communication costs, and faster implementation. Although some people think that Singapore is conservative in some policies, in my opinion, it is still a fair, open and rational place to look at innovation compared to many regions. On the basis of adhering to order, Singapore is indeed willing to give innovators opportunities.

Conclusion

This tightening of regulation is essentially a self-calibration of Singapore as an international financial center, rather than a drive away of the