A final instruction from Singapore’s financial regulator is driving unlicensed cryptocurrency exchanges out of the country. This directive has prompted a swift response from major players operating without local approval.
Singapore Tighten its Grip on Crypto Industry
Leading platforms Bitget and Bybit are now scrambling to reorganize operations, according to sources with knowledge of the matter. Bitget is reportedly moving staff to Dubai and Hong Kong, Bybit too, is considering the same.
Singapore, which established itself as an Asian crypto hub, has been tightening its grip on the industry following several crypto collapses in 2022. The country had issued licenses to firms like Coinbase and Crypto.com. But now, the Monetary Authority of Singapore (MAS) is discouraging retail participation and banning crypto advertisements.
MAS has also mandated that all crypto companies offering services abroad from a Singapore base must stop operations by June 30. The regulator has warned that new licenses would be issued only in “extremely limited” cases. This decision is expected to hit offshore exchanges hardest, with hundreds of jobs potentially on the line, according to Arthur Cheong, founder of DeFiance Capital.
“The scope is broad,” MAS clarified. Front-office roles, i.e., sales and business development, even if aimed at overseas markets, are still covered by the order. In a follow-up clarification issued on June 6, the regulator tried to ease industry concerns. It stated that only a “very small” number of providers would actually be affected. Yet, confusion still lingers.
Chris Holland, a partner at consultancy firm HM, said the order has sparked a wave of urgent inquiries. “We’re getting calls at all hours—from firms trying to understand if this applies to them, to offshore entities looking to unwind their local presence,” he said.
The MAS insists its position isn’t new. “This move should not come as a surprise,” a spokesperson told Bloomberg. “We have consistently communicated our expectations to the industry.” Licensed firms, they confirmed, remain unaffected.
Still, enforcement remains a challenge in an industry known for operating in regulatory gray zones. Many crypto companies have intentionally kept their operational bases vague. Binance, the world’s largest crypto exchange, has never declared a global headquarters and remains on Singapore’s investor alert list. The company reiterated its commitment to complying with local regulations, without offering specifics on its Singapore activities.
Crypto firms that have Singapore-based teams to support foreign operations (without clearly defined boundaries)may be reviewed on a case-by-case basis by the MAS.
Also Read: Singapore Exchange to Launch Bitcoin Perpetual Futures in 2025
