Johnny Ng Reacts to Singapore Guidelines on Licensing for Digital Token Service Providers, Highlights Hong Kong’s Supportive Web3 Regulatory Environment

Hong Kong legislator Johnny Ng responded to the latest Singapore Guidelines for Digital Token Service Providers, extending an invitation to Web3 firms. On June 4, Ng posted on X, highlighting the contrasting approaches of Singapore and Hong Kong towards virtual asset regulations. He emphasized Hong Kong’s supportive ecosystem since its 2022 policy statement. He said, “If you are considering relocating your headquarters and team to Hong Kong, I would be happy to assist.” His remarks follow the Monetary Authority of Singapore’s (MAS) directive enforcing strict conditions on local firms. This affects crypto services offered overseas under the Financial Services and Markets (FSM) Act 2022.

Johnny Ng Responds to Singapore Guidelines with Open Invitation

Johnny Ng, known for championing Web3 in Hong Kong, swiftly reacted to Singapore’s new licensing rules. His message was, “Hong Kong welcomes innovation and business.” The Singapore Guidelines, released on May 30, 2025, limit overseas operations of Singapore-based Digital Token Service Providers (DTSPs). Companies must halt overseas services or gain a rare license by June 30, 2025. No grace period exists. 

Ng noted that since Hong Kong’s 2022 virtual asset policy, thousands of Web3 companies have established a presence in the city. He offered his support to any firm choosing to relocate. His public offer is seen as a strategic move to position Hong Kong as a friendlier hub for global crypto players. Legal experts suggest firms may now explore shifting operations to other regions to avoid the licensing burden in Singapore. Ng’s timely statement aligns with this sentiment.

Singapore Licensing Rules Trigger Cross-Border Crypto Crackdown

The Monetary Authority of Singapore issued the new Singapore guidelines to tighten oversight of crypto activities linked to Singapore-incorporated firms. All Singapore-based DTSPs must stop serving overseas markets by June 30 unless licensed. The FSM Act now extends MAS’s jurisdiction to all Singapore-linked crypto operations, even abroad.

Licensing exemptions remain rare. Only firms meeting high capital thresholds and strict anti-money laundering (AML) and counter-terrorist financing (CFT) measures qualify. MAS cited elevated financial crime risks tied to cross-border crypto activities. As such, licensing will only be granted under “extremely limited circumstances.” All applicants must show a minimum capital of S$250,000 and pay an annual fee of S$10,000. Startups receive no special exemptions.

Regulatory Compliance or Exit: Limited Choices for DTSPs

The new Singapore guidelines give DTSPs little flexibility. The MAS will issue a four-week notice before enforcement but expects full compliance by the deadline. Firms failing to obtain a license must suspend or shut down international operations. Violators risk fines up to S$250,000 and up to three years in prison. Even individuals working from Singapore with foreign crypto entities fall under this rule unless exempted. 

MAS also banned bearer instruments, large cash payouts, and imposed new customer due diligence norms. Legal experts, including Hagen Rooke of Gibson, Dunn & Crutcher, advised urgent restructuring. “Eliminate Singapore connections to reduce compliance risk,” he wrote in a LinkedIn post. Many industry players believe the move may prompt a business exodus to jurisdictions with more balanced crypto frameworks.

Hong Kong Emerges as Strategic Alternative

With the Singapore guidelines in full effect, Hong Kong may gain an edge as a regional crypto hub. Johnny Ng’s statement reflects growing confidence in Hong Kong’s regulatory framework. The city continues to push forward with clear, pro-industry virtual asset policies. Singapore’s position aims to safeguard its financial system and reputation. However, some experts argue it may also drive out talent and capital.

In contrast, Hong Kong focuses on industry development under strict, yet accommodating rules. Regulatory clarity has already attracted several major Web3 players since 2022. With MAS signaling no further leeway, digital token firms will need to decide quickly, adapt to the rules or relocate. Johnny Ng’s offer stands as a timely signal that options remain open elsewhere.