Two leading cryptocurrency exchanges, Bitget and Bybit, are reportedly planning to reduce their operations in Singapore after receiving a final warning from the central bank that jeopardizes their ability to cater to international clients.
Both companies have been functioning in the city-state without a complete license and must either comply by the June 30 deadline or exit.
Recently, the Monetary Authority of Singapore (MAS) instructed all digital token service providers lacking a formal license under the Payment Services Act to stop international activities. This order allows no room for negotiation and also affects firms waiting for full approval.
The MAS has included offshore exchanges with front-office teams or international clientele in this ban.
Focus Shifts to Dubai and Hong Kong
On Thursday, Bloomberg noted that Bitget is already planning to relocate personnel away from Singapore, assigning staff to Dubai and Hong Kong, where regulations are more favorable for crypto businesses.
Bybit is also considering similar alternatives, although it has not publicly detailed its plans.
Dubai and Hong Kong have attracted a number of digital asset platforms seeking to navigate stricter regulations elsewhere. The Virtual Asset Regulatory Authority in Dubai has issued licenses to over 20 firms, including Binance and Bybit, under a regime that provides tax benefits and regulatory transparency.
Meanwhile, Hong Kong’s focus on cross-border interoperability and established financial systems has also garnered attention as it enhances its digital asset initiatives.
With Rules Tightening, Crypto Firms Weigh Exit from Once-Friendly Shores in Singapore
Once considered a crypto-friendly hub in Asia, Singapore has taken a more cautious approach since the market downturn in 2022, which led to the collapse of local firms like Three Arrows Capital and Hodlnaut.
Although the country continues to issue crypto licenses, authorities have restricted advertising, cautioned retail investors, and introduced new regulations for firms operating within its jurisdiction.
This decision by the MAS has raised alarms among industry experts, with some warning that the crackdown could result in significant job losses and weaken Singapore’s role in the global crypto landscape.
Currently, companies with unlicensed overseas operations are rushing to either comply with regulations or relocate, marking a shift in the region’s crypto dynamics.
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