The latest order of Singapore for unlicensed cryptographic companies, to stop using foreign clients, means the beginning of the regulatory gap in the blockchain industry.
The directive of May 30 from the monetary body of Singapore (MAS) tells cryptographic companies and people offering services abroad to get a license or get out.
For some in the industry it may look like a Singapore suddenly turns away from a cordial cryptocurrency attitude. But in fact, the municipal state remained consistent in the pursuit of compliance. The transfer is in line with global repression aimed at money laundering and financing terrorism.
“In the case of exchanges still playing in the regulatory pinball-stalls looking for gaps to avoid licensing requirements-the reality is clear: soon they will have to move to their favorite destination, the moon,” Cointelegraph Joshua Chu said.
“Thanks to jurisdictions such as Singapore, Thailand, Dubai, Hong Kong and others, sharpened supervision and closing gaps, you just can’t escape from the global pursuit of compliance.”
Exiled in Singapore, Crypto Nomads ran out of the road
Singapore was a favorable center of regulatory arbitration in cryptography, thanks to which Act on payment services (PSA)which requires licensing for companies serving local clients.
With relatively diminutive national population Of the approximately 6 million, many cryptographic companies have decided to licensed Sidetep, simply avoiding Singapore clients and focusing on foreign markets, excellent YK PEK, CEO and co -founder of a company dealing with GVRN legal technology, on X.
While some interpret the recent movement of the masses to reject unlicensed cryptographic companies under 2022 Act on services and financial markets (FSMA) On a busy date as a keen reversal of the policy, the regulator said he had maintained a indefinite attitude.
“The position of masses in this matter has been consistently transferred for several years from the first response to public consultations issued on February 14, 2022 and in subsequent publications on October 4, 2024 and May 30, 2025.”, Central Bank he said In a statement of June 6.
Fsma of state that every company in Singapore offering digital token services for customers abroad must be licensed. The law has not been changed. The masses have completed public consultations and informs service providers that their unlimited term is over.
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“I think we must recognize that Singapore is above all a global financial center, not necessarily cryptographic”, Patrick Tan, legal advisor in Chainargos, who was one of the respondents among respondents Consultation of the massesCointelegraph said.
“Considering the more severe conditions of cryptocurrency licensing around the world, organizations will have to think about what they want to get from a license,” he added.
Hong Kong does not offer any guarantees for Singapore cryptographic outcasts
When companies weigh their next movement, speculations grow over what jurisdictions may become more attractive. Recent achievements suggest that Singapore is not a protruding value, but a part of a global regulatory change.
For example, the Philippines now require all licensed cryptographic companies to maintain a physical office in the country. Thailand has recently issued at least five stock exchanges regarding the licensing and money laundering, giving investors to the transfer of assets by 28 June.
One of the places that appeared as an option is Hong Kong, a regional rival in Singapore. Two jurisdictions are often compared in the so -called Crypto Hub race.
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Hong Kong is also considered by Bybit, one of the exchanges recently expelled from Thailand. Publication of work by Bybit of the Licentment add -on in Hong Kong appeared Just a few days after the Thailand Committee of Securities and Exchange announced that the company would be blocked.
The Bybit spokesman confirmed Cointelegraph that Hong Kong is one of the jurisdiction considered for future licenses, adding that the company “works with regulatory bodies in different countries.” The exchange is also hiring For a similar role in Malaysia.
The industry finds out that being a “cryptocurrency center” often means a defendant but clearer regulatory framework. Neither Hong Kong nor Singapore adopted Laissez-Fair approach. In fact, Hong Kong had moved earlier, ordering all unlicensed stock exchanges to go to the market in mid -2012.
Companies that want to change Hong Kong can say that fewer companies have managed to secure licenses there. As at June 6, the city has only issued 10 cryptographic licenses, compared to 33 digital payment tokens licenses approved by masses under the dog.
“Looking to the future, we anticipate regulatory activities from other main cryptographic centers, including Hong Kong, the European Union with Mika [Markets in Crypto-Assets] Framework, evolving cryptographic rights of Great Britain, South Korea and Japan – all involved [Financial Action Task Force] Members with mature or maturation of regulatory regimes – said Chu.
Singapore is one of 40 FATF members
FSMA in Singapore has extended regulatory supervision for cryptographic service providers, especially those serving foreign clients. The Act complements the dog and was partially introduced to adapt to the fines of the Task group (FATF) on travel rules and money prevention standards (AML).
Adjusting rate of accelerated alignment after Fatf Fatf plenary sessionwhich began public consultations on improving the transparency of payments and taking up complex routes used to laundering money and evading sanctions.
“Dubai [Virtual Assets Regulatory Authority] He issued his rules 2.0 shortly after plenary, imposing a strict AML protocols from June [19] The deadline for compliance, reflecting his cautious approach after removing the gray list, “he noted Chu.
In the case of FATF members, such as Singapore and Hong Kong, AML standards are expected to tighten. But in the case of non -members who do not meet compliance, including Fatf Gray may be economically destructive. For example, the Think Tank Tank Tank report estimated Placing Pakistan on the Fatf Gray list in the years 2008–2019 led to the cumulative loss of gross domestic product of around $ 38 billion.
https://www.youtube.com/watch?v=RCXZ0i2SDQM
President Fatf Elisa de Anda Madrazo from Mexico made strengthening standards for virtual assets, one of the priorities of her two -year term. Source: Fatf/YouTube
In addition to recently sharpening cryptocurrency regulations, another common denominator among Thailand, the Philippines and the United Arab Emirates is to remove them from the Fatf Gray list. Thailand was removed In 2013 Zea in 2024 and Philippines In 2025, according to Chu, jurisdictions that leave the gray list often work “extremely difficult” to refrain with it.
Dubai, the rising financial center in the United Arab Emirates, was a magnet for cryptographic companies due to friendly principles and a dedicated regulator, but legal experts warn against misunderstanding of the ecosystem.
“Dubai has just got out [the gray list] Not so long ago and is on the suspension list, “said Chu. “So the characters who think they are secure in Dubai can be in a somewhat false sense of security.”
This means that the era of jurisdiction jumping to the avoiding regulation is coming to an end. When cryptographic companies are looking for the next base, the list of friendly, but gentle destination places shrink, and even the most friendly center requires compliance.
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