Singapore’s latest adherence to unlicensed crypto companies to stop serving overseas customers has marked the beginning of the graduation for regulations loopholes in the blockchain industry.
May 30 Directive from Singapore’s Monetary Authority (MAS) tells of crypto and individual companies offers overseas services to get licensed or exit.
In some of the industry, it may seem like Singapore has suddenly turned away from its crypto-friendly stance. But in reality, the city-state remained consistent in pushing it into compliance. The move is in line with a global cracker aimed at money laundering and financing of terrorism.
“For exchanges still playing pinball regulation-continuously looking for loopholes to avoid licensing requirements-clearly the fact: they are about to see themselves need to move to their favorite destination, the moon,” Joshua Chu, a Hong Kong-based lawyer and co-chair of the city’s Web3 Association, said CointeleGraph.
“In jurisdictions such as Singapore, Thailand, Dubai, Hong Kong and others, the administration and closure of gaps is tight, there is no simple escape to the global push for compliance.”
Thrown into Singapore, crypto nomads run out of road
Singapore has become a desirable hub for regulation arbitrage in crypto, thanks to this PAYMENT SERVICES ACT (PSA)which requires licensing for companies serving local clients.
With relatively small Domestic population Around 6 million, many crypto companies have decided on the licensing of the sidestep just by avoiding Singaporean customers and focusing on overseas markets instead, mentioned YK Pek, CEO and co-founder of legal tech firm GVRN, in X.
While some define the recent transition of MAS to oust the unlicensed crypto companies underneath the 2022 Financial and Markets Act services (FSMA) In a tight deadline as a sharp return policy, the regulator said it maintains a stable bearing.
“The position of more here has continued to be sent for several years since the first response to public consultation released on February 14, 2022 and in subsequent publications on 4 October 2024 and 30 May 2025,” the central bank Says In a statement June 6.
The FSMA state That any Singapore business that offers digital token services to clients abroad should be licensed. The law has not been changed. Instead, more public consultations have completed the service providers that their unlicensed tenure has finished.
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“I think we need to acknowledge that Singapore is the first and most important of a global financial center, not a crypto,” Patrick Tan, general advice on chainargos, among those who respond to the respondents Consultation MASsaid to the cointelegraph.
“Due to the stricter conditions of crypto-asset licensing around the world, organizations need to consider what they seek to get from a license,” he added.
Hong Kong offers no guarantee for Singapore’s crypto outcasts
As companies weigh their next move, the speculation is growing on what can be attractive -attract. Recent developments suggest Singapore is not an outlier but part of a global regulatory transfer.
For example, the Philippines, now requires all licensed crypto companies Keep a physical office In the country. Thailand has recently Posted by at least five exchanges Over the licensing and money concerns, which gives investors until June 28 to transfer their ownership.
One destination that has emerged as an option is Hong Kong, Rivals of the Singapore region. The two constituents are often compared to the so -called Crypto Hub Race.
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Hong Kong is also considered bybit, one of the recent exchanges driven from Thailand. A job post by bybit looking for a licensing advice in Hong Kong appeared Just a few days after Thailand’s Securities and Exchange Commission announced that the company would be locked.
A Bybit spokesman confirmed to Cointelegraph that Hong Kong is one of the constituents considered for future licenses, adding that the company is “working with regulators in various countries.” The exchange too Pagalupa for a similar role in Malaysia.
The industry has learned that being a “crypto hub” often means dealing with lighter but clearer regulation frameworks. Neither Hong Kong nor Singapore did not get laissez-faire strategy. In fact, Hong Kong has moved in earlier, Ordering all unlicensed to replace to exit the market in mid -2024.
Companies looking for a pivot in Hong Kong may find that fewer companies have succeeded in securing licenses there. On June 6, the city released only 10 crypto licenses, compared with 33 digital payment token licenses Approved Not even under the PSA.
“At the forefront, we look forward to regulatory actions deep from other major crypto centers including the Hong Kong framework, the European Union framework including MICA (markets in crypto laws, and Japan-all are focused (financial action activities of members with mature members or mature regulations,” said Chu.
Singapore belongs to 40 FATF members
Singapore’s FSMA has expanded the regulation of crypto service providers, especially those serving clients abroad. The law fits the PSA and is introduced in part to align with the Financial Action Task Force (FATF) command to Travel Law and Anti-Money Laundering (AML) standards.
Regulatory alignment speed is accelerated after Fatf’s February Plenary Session.
“Dubai’s (Virtual Assets Regulatory Authority) released Deadline of compliancereflecting its careful approach following the removal of the colored list, ”says Chu.
For FATF members such as Singapore and Hong Kong, AML standards are expected. But for non-members who are less compliant, integration with the gray fatf list can ruin the economy. For example, a Think Tabadlab report Attached Pakistan putting on Fatf Gray’s list between 2008 and 2019 led to a combined -with -a -domestic product losses of nearly $ 38 billion.
https://www.youtube.com/watch?v=RCXZ0I2SDQM
FATF president Elisa de Anna Madrazo of Mexico has made strengthening standards for virtual properties as one of the priorities of her two-year term. Source: Fatf/YouTube
Aside from recently their crypto regulations, another common denominator in Thailand, the Philippines and the United Arab Emirates is their removal from the Fatf Gray list. Thailand is Delisted In 2013, the UAE in 2024 and the Philippines In 2025. According to Chu, the constituents that appear on the color list often work “extremely difficult” to stay it.
Dubai, the emerging UAE financial center, has become a magnet for crypto businesses due to friendly policies and focused regulators, but legal experts have warned against ecosystem disputes.
“Dubai just came down (the color list) not too long and on the probation list,” Chu said. “So, the characters they think are safe in Dubai may be in a little mischievous security.”
This means that the period of hopping jurisdictions to dodge regulation is close. As the crypto companies find for their next base, the list of friendly but rugged destinations is backwards, and even the most welcome hubs are demanding compliance.
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