Singapore’s ousted crypto firms may not find shelter elsewhere

Singapore’s recent regulatory crackdown on unlicensed cryptocurrency firms marks a significant tightening of oversight that will likely leave ousted firms with few safe havens elsewhere.

The Monetary Authority of Singapore (MAS) has mandated that all crypto firms operating from Singapore must either obtain a Digital Token Service Provider (DTSP) license by June 30, 2025, or cease serving overseas clients.

This directive is rooted in concerns over money laundering and terrorism financing risks, and it closes previous regulatory loopholes that allowed firms to avoid licensing by focusing solely on foreign customers.

This move is not an abrupt policy reversal but a continuation of Singapore’s consistent stance on crypto regulation, emphasizing compliance and financial security. The MAS has communicated this position clearly since 2022, and the new enforcement deadline signals the end of tolerance for unlicensed offshore operations.

However, firms expelled from Singapore face a challenging global regulatory environment. Other jurisdictions in Asia and beyond, including Thailand, the Philippines, Hong Kong, South Korea, the EU, the UK, and Japan, are also tightening crypto regulations, closing gaps, and requiring licenses with strict compliance standards. For example, Thailand has expelled several exchanges over licensing and anti-money laundering concerns, and Hong Kong has ordered unlicensed exchanges to exit its market as early as mid-2024. Hong Kong, often seen as a regional rival to Singapore, has issued far fewer crypto licenses than Singapore, making it a less certain refuge for displaced firms.

The global crackdown means that crypto firms seeking to relocate will find fewer jurisdictions offering regulatory leniency. The industry is moving toward mature, comprehensive frameworks that prioritize investor protection and financial integrity. As a result, Singapore’s ousted crypto firms may struggle to find alternative jurisdictions that allow them to operate unlicensed or with minimal oversight.

This regulatory convergence suggests that firms must either adapt to stringent licensing requirements worldwide or face exclusion from major markets.

So, Singapore’s enforcement of licensing for crypto firms serving overseas clients is part of a broader global trend toward stricter regulation. Ousted firms will likely find it difficult to find regulatory shelter elsewhere, as many other jurisdictions are closing their doors to unlicensed crypto operations, signaling a new era of compliance and oversight in the crypto industry.

It's me, @justmythoughts, an ordinary Hive user looking to make the most of the platform. I will appreciate your support. Follow me for more. Thanks, Gracias :)