Singapore’s Crypto Exodus Begins As MAS Forces Offshore Firms To Shut Overseas Services
Crypto exchanges operating in Singapore without a local licence are facing a sudden and sweeping regulatory clampdown, forcing urgent exits, staff reshuffles, and rising fears of job losses.
At the heart of the storm is a directive from the Monetary Authority of Singapore (MAS), which has ordered unlicensed firms based in the city-state to stop serving overseas clients by 30 June 2025 — giving them just one month to comply, with no grace period.
Bitget, Bybit And Others Rethink Their Singapore Strategy
Among the first to respond are Bitget and Bybit, two of the world’s top ten exchanges by trading volume.
Both are now quietly preparing to relocate staff to more crypto-tolerant jurisdictions like Dubai and Hong Kong.
Neither company has publicly confirmed the moves, but sources close to their operations say internal restructuring is already underway.
Though not directly affected, Patrick Tan, general counsel at blockchain intelligence firm ChainArgos, described the situation as “quite severe,” adding,
“This is almost as good as an evacuation procedure.”
No Licence, No Business — And No More Loopholes
MAS made its position clear in a 30 May directive, effectively closing a long-standing grey zone.
While Singapore’s Payment Services Act already required a licence to serve local customers, many firms had been using Singapore as a base for overseas operations — without licensing, but also without engaging local retail clients.
That legal ambiguity is now over.
The MAS directive, rooted in the Financial Services and Markets Act (FSMA) of 2022, makes it explicit: any Singapore-based operation offering digital token services abroad must be licensed.
No exceptions.
In a follow-up statement on 6 June, MAS stressed that this approach has been “consistently communicated” since its initial public consultation back in February 2022.
“MAS’ position on this has been consistently communicated for a few years since the first response to public consultation issued on 14 February 2022 and in subsequent publications on 4 October 2024 and 30 May 2025.”
Industry On Edge As Regulatory Pressure Escalates
The abrupt nature of the enforcement has left many firms scrambling.
Consulting firms report a sharp uptick in urgent calls and legal consultations.
According to Chris Holland, partner at Singapore-based consultancy HM,
“Calls are at all hours given the impact on businesses headquartered outside Singapore. Some are scrambling to understand their exposure and risks.”
He elaborated,
“Queries range from regulated firms wanting to confirm there is no unexpected operational impact to offshore businesses needing to derisk their Singapore activities.”
While MAS insists the new rules will only affect a “very small” group of providers, the reality on the ground feels far more widespread.
Offshore exchanges have long relied on front-office teams — especially in business development and sales — based in Singapore.
Now, those teams are facing an uncertain future.
Arthur Cheong, founder of DeFiance Capital LLC, warned that “hundreds of jobs” could be at risk.
A Blow To Singapore’s Crypto Workforce
Singapore’s strategic location, regulatory stability, and fintech reputation have long attracted global crypto players.
But firms like Binance, which has been on MAS’s investor alert list since 2021, show how the environment has shifted.
Binance CEO Richard Teng, a Singaporean, has previously described the company as “remote-first,” with no fixed headquarters.
A Binance spokesperson reiterated the firm’s intent to comply with global rules but gave no specifics on its Singapore presence.
The current situation is exposing how fluid — and often intentionally vague — corporate structures in the crypto world really are.
Grace Chong, head of financial regulatory practice at Drew & Napier, noted that companies using Singapore-based staff “to support offshore operations without clear service delineation” fall into a legal “gray area.”
MAS has indicated that such cases will be reviewed individually.
What’s Driving Singapore’s Tough Stance?
Beyond local governance, Singapore’s pivot aligns with international pressure to tighten financial oversight.
As one of 40 members of the Financial Action Task Force (FATF), the city-state is bound by global standards on anti-money laundering and the Travel Rule.
The FSMA was partly designed to align with these requirements, and the pace has only quickened following the FATF plenary session in February 2025.
Regulators in other regions are also following suit.
Dubai’s Virtual Assets Regulatory Authority issued a stricter AML Rulebook earlier this year, with a compliance deadline of 19 June.
Hong Kong and Thailand are also closing previous gaps in oversight.
Joshua Chu, a Hong Kong-based lawyer and co-chair of the Web3 association, noted,
“With jurisdictions like Singapore, Thailand, Dubai, Hong Kong and others tightening oversight and closing gaps, there’s simply no escaping the global push for compliance.”
No Second Chances For Offshore Crypto Firms
Unlike previous MAS policies that allowed transition periods or staged enforcement, the current directive offers no such runway.
Licensed firms remain unaffected, but offshore entities — especially those with unclear or hybrid operating models — must now decide: get licensed or leave.
MAS maintains that the directive is not a policy shift but rather the culmination of a long consultation process.
The rules were already in place — the difference now is strict enforcement.
An MAS spokesperson told Bloomberg News,
“This move should not come as a surprise. Entities already licensed are not affected by this latest guidance.”
A Moment Of Reckoning For Crypto Employment In Singapore
For the thousands employed in Singapore’s digital asset sector, the sudden regulatory shift could mark the end of an era.
The city-state has positioned itself as a fintech leader, but it has also learned hard lessons from the 2022 crash, which saw the collapse of several major local crypto ventures.
Authorities are now prioritising sustainable, compliant growth over fast-moving, high-risk operations.
Singapore’s Balancing Act — A Test For Global Hubs
Singapore is not turning away from crypto — it’s demanding a different kind of participation.
As regulators close the loopholes that once allowed shadow operations, crypto firms will need to decide what kind of future they want: one grounded in transparency and regulation, or one that keeps shifting borders.
Being crypto-friendly does not mean being rule-free.
And for firms unwilling to play by the rules, the door is closing — fast.
Alex
Kikyo
Brian