June 27, 2025
By Anjali Kochhar
Singapore, long considered a crypto-friendly hub in Asia, is rapidly shifting gears. The Monetary Authority of Singapore (MAS) has launched a sweeping crackdown on unlicensed crypto exchanges particularly those catering exclusively to overseas clients demanding they shut operations or secure a hard-to-attain license by June 30. This sudden policy shift has triggered a noticeable exodus, with major players now eyeing Hong Kong and Dubai as safer havens for their digital ventures.
The MAS’s move comes as part of a broader effort to clean up the local crypto ecosystem, which has suffered reputational damage in recent years. The spectacular collapse of Terraform Labs behind the $40 billion TerraUSD implosion and the downfall of hedge fund Three Arrows Capital, both with ties to Singapore, left global investors questioning the city-state’s oversight.
“Singapore took a reputational hit during the crypto winter,” said Yuankai Lin, a partner at law firm RPC. “This clampdown appears to be MAS’s way of flushing out unregulated operators and restoring confidence in its regulatory environment.”
The decision is already impacting major exchanges. Bitget and Bybit, two global giants with operations in Singapore, are reportedly preparing to relocate staff to Hong Kong and Dubai. While Bitget declined to comment, and Bybit did not respond, sources suggest this is just the beginning of a broader shift.
MAS clarified that firms targeting foreign users are harder to regulate and carry higher risks of money laundering. “If their substantive regulated activity is outside of Singapore, MAS is unable to effectively supervise such persons,” the regulator said. It also emphasised that such business models face a high barrier to licensing.
Legal experts say this marks a decisive end to Singapore’s previously flexible approach. “MAS is de facto shutting down the industry that was operating on the fringes of the existing framework,” said Hagen Rooke of Gibson, Dunn & Crutcher.
Meanwhile, Hong Kong and Dubai which have been actively courting crypto businesses with tax breaks and clear frameworks stand to benefit. “Crypto companies have a history of regulatory pinball,” noted Chengyi Ong of Chainalysis. “Jurisdictions like Hong Kong, Dubai, and even the US are being seen as the next stops.”
As Singapore tightens control, the race to host the future of crypto is accelerating elsewhere.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
