Two major crypto exchanges, Bitget and Bybit, are reportedly preparing to scale back operations in Singapore following a final warning from the country’s central bank that threatens their ability to serve overseas clients.
Both firms have operated in the city-state without a full license and now face a June 30 deadline to comply or withdraw.
The Monetary Authority of Singapore (MAS) last week ordered all digital token service providers without a formal license under the Payment Services Act to cease overseas activities. The directive leaves little room for negotiation and applies even to firms awaiting full approval.
Offshore exchanges with front-office teams or international customers are included in the ban, according to the MAS.
Focus Shifts to Dubai and Hong Kong
Bloomberg reported Thursday that Bitget is already making plans to move staff out of Singapore.The company will reassign team members to Dubai and Hong Kong, where licensing frameworks are more open to crypto firms.
Bybit is reportedly exploring similar options, although it has not confirmed its next steps.
Dubai and Hong Kong have become magnets for digital asset platforms looking to navigate tightening rules elsewhere. Dubai’s Virtual Asset Regulatory Authority has granted licenses to more than 20 firms, including Binance and Bybit, under a regime that offers tax advantages and regulatory clarity.
Hong Kong, with its emphasis on cross-border interoperability and traditional finance infrastructure, has also drawn interest as it ramps up its digital asset initiatives.
With Rules Tightening, Crypto Firms Weigh Exit from Once-Friendly Shores in Singapore
Singapore, once viewed as Asia’s crypto haven, has adopted a more cautious stance in the wake of the 2022 market downturn that saw the collapse of local platforms like Three Arrows Capital and Hodlnaut.
While the country continues to issue crypto licenses, authorities have limited advertising, warned retail investors, and imposed new controls on firms operating from within its borders.
The MAS decision has sparked concern among industry insiders, with some warning that the clampdown could lead to significant job losses and diminish Singapore’s position in the global crypto economy.
For now, firms with unlicensed overseas operations are scrambling to comply or relocate, signaling a shift in the region’s balance of crypto power.
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