From the ideal country to the "exit place": The change in Singapore in the eyes of 5 Web3 practitioners

Interview, compiled by: Louis , ChainCatcher

June 30, 2025 is a red line written on the calendar of each practitioner in the Web3 circle of Po County.

From this day on, according to Article 137 of the Financial Services and Markets Act ( FSMA ) in Singapore , all individuals or companies that provide digital token-related services must obtain a digital token service provider (DTSP) license as long as they have a business place in Singapore, regardless of whether the service recipient is in Singapore , or they will face criminal liability.

The Singapore Financial Regulatory Authority ( MAS ) clearly stated in the regulatory response document released on May 30 that those who are not licensed at the time must immediately stop their overseas business; they will not accept the status in the application as a legal basis for existence. This wording has been interpreted by many people as " the strictest cryptocurrency ever. "

In this regard, ChainCatcher consulted professional lawyers about the neglected key points in this FSMA document. In addition, we also interviewed 5 base practitioners in Singapore to try to restore the realization of Web3er in Singapore and understand the changes in Singapore’s regulatory changes in their eyes.

Note: In this article, MAS is a financial regulator in Singapore. PSA was launched in 2019 and was an early law that specialized in crypto payment services. FSMA was launched in 2022. The new version of the more comprehensive regulatory bill has joined the management of token-related services. DTSP refers to an individual or company that provides token trading, custody, transfer and other services, and is the target of FSMA's key supervision.

1. The core points of the neglected bill

During the interview with Beijing Strategy Law Firm and Director of the Digital Economy Committee, we found the following bill contents worthy of readers ' attention:

1. FSMA is not an overseas patch, but a comprehensive upgrade, and domestic and foreign businesses are subject to restrictions.

Many industry insiders mistakenly believe that FSMA is just to make up for the loopholes in Singapore enterprises serving overseas customers that the original Payment Services Act ( PSA) failed to regulate. However, Lawyer Guo emphasized: "FSMA is a framework law that coordinates supervision , and its multiple parts apply to entities that provide financial services in Singapore ." This means that no matter whether the business is domestic or overseas, as long as a business premises in Singapore or a company registered in Singapore is established, it must comply with FSMA . This penetrating regulatory logic also marks the official launch of MAS's comprehensive supervision of local Web3 practitioners.

2. The focus of supervision shifts from " institutional license " to " personal review "

PSA mainly focuses on compliance between enterprises and institutions, while FSMA has added a new regulatory mechanism for people . Lawyer Guo pointed out: "FSMA allows MAS to bypass the traditional institutional licensing framework, directly interfere with 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 may be recognized as regulatory targets by MAS as long as they engage in related services within the slope. " It is required to fully understand the FSMA framework and have relevant professional experience " , thereby greatly increasing the threshold for personal professionalism.

3. The threshold for FSMA has been significantly raised, and compliance requirements are far beyond PSA.

Even if you already have a PSA license, it cannot be used automatically. Lawyer Guo pointed out: " At present, most of the approved crypto business licenses on the market are still issued based on PSA, and FSMA has significantly raised the compliance threshold. MAS clearly stated that even companies that have obtained PSA licenses need to resubmit supplementary materials to meet the FSMA requirements. " Applying for a DTSP license requires not only the initial capital of S$250,000 and the permanent compliance officer, but also the establishment of an independent audit mechanism, regular compliance reports, and meet the process and supporting management system of anti-money laundering and anti-terrorism financing.

2. Let’s see what Web3 practitioners in Po County say?

From wide coverage to more detailed requirements, to elevated thresholds, the stricter supervision has indeed caused a lot of pressure and panic for Web3er. However, the regulations on paper are based on paper, which can truly reflect whether a country's policy welcomes Web3 , depends on what the actual implementation of the enterprises and practitioners say. In the interview with ChainCatcher , we also heard completely different voices - from the startup team who had no choice but to individual workers who chose to wait and see, to old immigrants who are still optimistic about the long-term potential of Poland, their stories have pieced together a real picture of policy implementation:

1. Chari , founder of the tokenized operation project : Small businesses have their own way of survival, and rivers will always find a way out.

We have indeed been affected. In the current currency circle, almost all meaningful products cannot avoid transactions in the end __ This core. Once transactions are involved, it will inevitably touch the DTSP regulatory red line. Regulation should serve companies with mature business models and clear structures, and for small teams like us, investing a lot of time and resources to deal with regulation is almost an unbearable burden.

It is obvious that Singapore is no longer suitable for the development of startup projects. Perhaps Singapore has never thought of becoming the cradle of startups. They only hope to become the headquarters of mature companies. It is still uncertain that our business model will become next month, and it is not ruled out that the possibility of a complete move from Poland in the future is not ruled out. However, I will face change with an optimistic attitude, after all, "small businesses must have their own way of survival."

2. A geek boy (pseudonym): Singapore is a "pragmatic scumbag" , whoever is valuable will stay

I feel that the Web3 industry has been somewhat rejected, whether it is driven away by China before or the marginalization of 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 pragmatic **** It is the background color of Singapore's regulation. To put it bluntly, the Singapore government is like a "pragmatic scumbag": whoever can bring substantial value can stay; whoever only brings bubbles can give away guests appropriately. Those who have issued a license can continue to do it, and others must be cleared out. This is a very clear signal.

However, from my perspective, the supervision this time is not that iron fist, but more like - "thunder loudly and raindrops are small", mainly to shake the tiger. Companies that really need licenses have already applied for it. 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 suddenly tightens, I think this is related to the gray industry in the currency circle in Southeast Asia and shell companies. MAS 's current goal is actually to use this wave of regulations to sound a wake-up call for some unstandard KOLs and scattered groups. They may not be able to really cut off these people in one size fits, but they hope to use the legal framework to force them to restrain themselves.

As far as I know, recently some KOLs and exchange practitioners have chosen to suspend their business, go out for a trip, or stay on the sidelines, and everyone is waiting for a clearer signal.

3. John, a practitioner who has been deeply engaged in the field of Web3 AI in Singapore for many years : Looking at the essence through phenomena, there will be results when there is a cause.

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 ensure economic benefits and strive for a stable position in the international political and financial game. This time the regulatory provisions are becoming more and more stringent, because there are some problems that need to be faced in the Web3 field, and the government must intervene to ensure the healthy development of the ecology.

My project has not been directly affected at present, but I can see that this round of policy adjustments has indeed brought considerable impact to some exchanges that have not yet obtained licenses, as well as project parties and ecological partners that have cooperated with them. Especially those KOLs who play financial advisor roles in the Web3 circle , the pressure on policies has been transmitted to them and has also 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 reduce unnecessary trouble.

4. Reddio founder Neil , living in Poe for nearly 20 years : Everything has not changed, Web3 is still part of Singapore 's national strategy

In fact, Singapore’s regulatory policies in the Web3 field have not changed drastically in recent years , but are more about clarifying and refining the existing framework. According to the latest clarification from MAS and reports from Lianhe Zaobao, the focus of this regulation is on digital payment tokens ( DPTs ) and tokens with capital market attributes, while the Utility Tokens and Governance Tokens we often call are not among the core of their regulatory requirements.

For most startup projects, Singapore is still an environment with clear systems, clear paths and rich resources. MAS not only maintains high transparency for a long time, but also has an open consulting mechanism. It is actually not difficult for companies to evaluate their own compliance. You can get legal advice by spending a few thousand coins, and the cost is reasonable.

From a longer-term perspective, Web3 remains 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 industrial alliances. The Ministry of Education of Singapore also highly encourages universities to offer blockchain courses. I personally always believe that on a global scale, if you want to find a place that can truly take into account regulatory rationality and industrial vitality, Singapore is still the most inclusive and trustworthy choice for entrepreneurs.

5. Chess, founder of GM Agents : It was a reshuffle, but it was aimed at financial direction rather than everyone

For us, the current regulatory changes have not brought any significant impact. We are an AI startup and still plan to stay in Singapore to continue to build. I think this round of supervision is more about enterprises and projects with strong financial attributes, and the actual impact for small teams like us is relatively limited. There is nothing wrong with big companies in the currency circle, but in fact it is not the small team’s turn to worry about it.

When it comes to the entrepreneurial environment in Singapore, I always feel 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 view innovation compared to many regions. On the basis of upholding order, Singapore is indeed willing to give innovators opportunities.

Conclusion

The tightening of regulation is essentially a self-calibration of Singapore as an international financial center, rather than a driving force to the Web3 industry. Web3 practitioners are not simply divided into two factions: escape and left-behind. Instead, they are re-choosing and considering whether to stay and accept higher intensity of regulation in exchange for long-term policy certainty, or to turn to markets that seem more friendly but full of uncertainty.