- Tighter compliance rules in Singapore are prompting some crypto firms to move operations abroad.
- Dubai and Hong Kong emerge as alternative hubs with contrasting regulatory approaches.
What happened: Singapore’s crypto-friendly image faces a test as some companies explore relocation due to increased regulatory scrutiny
Singapore’s reputation as a global crypto hub is under pressure as stricter regulations spur some firms to look elsewhere. A recent Cointelegraph report highlights how enhanced regulatory oversight from the Monetary Authority of Singapore (MAS) has prompted certain companies to exit the city-state. MAS now requires digital asset firms to comply with tighter licensing, disclosure, and anti-money laundering standards.
Notably, crypto services firm Liminal, headquartered in Singapore, has expanded its presence to Abu Dhabi and Hong Kong in response. CEO Mahin Gupta explained the shift is partly driven by Singapore’s slow licensing process, which has left several firms in regulatory limbo for years. While some, like Coinbase, still maintain operations in the country, others are evaluating more business-friendly jurisdictions.
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Why this is important
Singapore’s shift reflects a broader trend where governments globally are re-evaluating how to balance innovation with consumer protection in crypto markets. MAS’s stricter stance follows multiple global crypto collapses, including FTX, which impacted local retail investors. While the regulator aims to strengthen safeguards, critics argue the over-cautious framework may stifle innovation and reduce competitiveness.
Alternative jurisdictions like Hong Kong and Dubai are capitalising on this shift. Both regions have introduced more streamlined licensing regimes while projecting a supportive posture toward digital assets. Hong Kong’s Securities and Futures Commission (SFC), for example, is encouraging retail trading under specific conditions, signalling a more open approach.
Singapore’s crypto policy evolution is significant for industry players seeking regulatory certainty. While it remains a respected financial centre, its tightening grip may cause a slow talent and capital drift. The outcome will affect not just individual firms but Asia’s standing in the competitive global race for crypto leadership.
