Singapore’s latest orders for unlicensed crypto companies to stop serving overseas customers mark the end of regulatory loopholes in the blockchain industry.
Singapore’s currency authorities (MAS) told cryptocurrency companies and individuals on May 30 Provide services abroad to obtain a license or leave.
For some in the industry, it looks like Singapore has suddenly moved away from its crypto-friendly stance. But in reality, city-states have been consistent in promoting compliance. The move coincides with global repression aimed at money laundering and terrorist financing.
“For communications that are still playing regulatory pinball – constantly seeking loopholes to avoid licensing requirements – the reality is clear: they will soon find themselves having to move to their favorite destination, the moon,” Joshua Chu, Hong Kong attorney and co-chairman of the city’s Web3 Association, told Cointelegraph.
“With jurisdictions such as Singapore, Thailand, Dubai, Hong Kong, and others intensifying oversight and closing the gap, there is no escape from global compliance efforts.”
Crypto nomads exile in Singapore
Because of its Payment Services Act (PSA)This requires licensing to companies serving local customers.
Relatively small Domestic population About 6 million, many crypto companies choose to evade licenses by simply avoiding Singaporean customers and focusing on overseas markets Famous X. CEO and co-founder of GVRN, legal technology company YK PEK.
Some explain the recent MAS transfer to evict unlicensed crypto companies Financial Services and Markets Act 2022 (FSMA) During the pressing deadline, the regulator said it has maintained a stable stance.
“MAS’s position on this has been going on for several years since its first response to public consultations on February 14, 2022 and subsequent publications, during public consultations on October 4, 2024 and May 30, 2025. explain In a statement on June 6.
FSMA nation Any business in which Singapore provides digital token services to customers overseas must be licensed. The law has not changed. Instead, MAS has completed public consultation and notified the service provider that their unlicensed term has ended.
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“I think we need to recognize that Singapore is a global financial center first, not necessarily a cryptocurrency center,” said Patrick Tan, general counsel for Chainargos. MAS consultationtell Cointelegraph.
He added: “Given the stricter crypto asset licensing conditions around the world, organizations will need to reflect on what they are looking to get from the license.”
Hong Kong does not provide guarantees for Singapore cryptocurrency
As companies weigh next steps, speculation that jurisdictions may become more attractive is growing. Recent developments show that Singapore is not an outlier, but part of a global regulatory shift.
For example, the Philippines now requires all licensed crypto companies Maintain the body office In the country. Thailand has recently At least five exchanges were expelled Prior to June 28, licensing and money laundering issues were provided to investors to relocate their assets.
Singapore’s regional rival Hong Kong is a chosen destination. In so-called crypto hub competitions, the two jurisdictions are often compared.
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Bybit also considered Hong Kong, one of the exchanges recently fired from Thailand. Bybit seeks licensing lawyer job posting in Hong Kong Appear The Securities and Exchange Commission of Thailand announced that the company will be blocked a few days after it was announced.
A Bybit spokesman confirmed to Cointelegraph that Hong Kong is one of the jurisdictions for future licenses, adding that the company “works with regulators in different countries.” The exchange is also employment It has a similar effect in Malaysia.
The industry is learning that being a “crypto hub” often means facing a tighter and clearer regulatory framework. Neither Hong Kong nor Singapore have adopted a laissez-faire approach. In fact, Hong Kong moved early Order all unlicensed exchanges Exit the market in mid-2024.
Companies looking to the Hong Kong hub may find that fewer and fewer licenses are obtained here. As of June 6, the city has issued only 10 crypto licenses, while 33 digital payment token licenses Officially recognized by MAS under PSA.
“Looking forward, we expect regulatory actions in Hong Kong, other major crypto centres including its European Union, its Mica (the market in Crypto-Assets), the growing crypto laws in the UK, South Korea and Japan (Japan) – all promised (Financial Action Working Force) members or mature statutory regulations,” Chu said. ”
Singapore is one of 40 FATF members
Singapore’s FSMA has expanded regulatory oversight of crypto service providers, especially those serving overseas customers. The bill complements the PSA and partially introduces consistency with the FATF mandate Travel rules and anti-money laundering (AML) standards.
exist FATF’s February plenary meetingthe company advises publicly on increasing payment transparency and addressing complex trails used for money laundering and sanctions evasion.
“Dubai’s (virtual asset regulator) released its Rule Manual 2.0 shortly after the plenary meeting, imposing a stricter AML protocol and on June 19 (19) Compliance deadlinereflects the cautious approach after the grey list. “Chu pointed out.
For FATF members such as Singapore and Hong Kong, AML standards are expected to be tightened. However, for non-members who do not meet compliance, inclusion on the FATF gray list can be devastating. For example, the report from the think tank Tabadlab Estimated Between 2008 and 2019, Pakistan’s position on the FATF gray list resulted in a cumulative real GDP loss of approximately US$38 billion.
https://www.youtube.com/watch?v=rcxz0i2sdqm
FATF President Elisa de Anda Madrazo of Mexico has raised the standard of virtual assets for her two-year term priorities. source: FATF/YouTube
In addition to the recent tightening of crypto regulations, Thailand has another commonality, the Philippines and the United Arab Emirates were removed from the FATF Gray list. Thailand is Insanity 2013 UAE In 2024 and the Philippines In 2025. According to Chu, jurisdictions that exit the greylist usually “work hard” to stay away from it.
Dubai, the UAE emerging financial hub, has sparked magnets for cryptocurrency operations due to its friendly rules and dedicated regulators, but legal experts warn not to misunderstand the ecosystem.
“Dubai got off the bus not long ago (the gray list) and was on the probation list,” Chu said. “So, it may be a bit of a false sense of security to think that you are safe in Dubai.”
This means that the era of jurisdictions that evade regulations is coming to an end. As cryptocurrency companies search for their next base, the list of friendly but loose destinations is shrinking, and even the most enthusiastic hubs demand compliance.
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