Singapore’s shift from a “crypto-friendly” hub to stringent regulation stems from growing concerns over financial risks and global compliance pressures. Initially, the Monetary Authority of Singapore (MAS) fostered innovation with a progressive stance, attracting crypto firms. However, high-profile incidents like the 2022 FTX collapse exposed vulnerabilities, prompting tighter rules. The 2024 amendments to the Payment Services Act expanded oversight, mandating licenses for digital payment token providers and enforcing strict AML/CFT measures. By June 2025, unlicensed firms must halt overseas operations or face hefty fines. This aligns with global trends to curb money laundering and protect investors, prioritizing financial stability over unchecked growth. While some firms may relocate to jurisdictions like Hong Kong, Singapore aims to balance innovation with robust safeguards.