Singapore’s crypto warning triggers exchange exodus

Singapore’s latest regulatory clampdown on offshore digital-asset firms has triggered a wave of urgent exits and staff restructuring among major crypto exchanges operating in the city-state without a license.

Bitget and Bybit, both top-10 crypto exchanges globally by trading volume, are now preparing to shift operations out of Singapore, sources familiar with the matter revealed. Bitget will relocate staff to crypto-friendly jurisdictions such as Dubai and Hong Kong, while Bybit is weighing similar moves. Both exchanges declined to comment publicly.

The move follows a final warning from the Monetary Authority of Singapore (MAS), which on May 30 issued a directive requiring crypto firms with Singapore-based operations serving overseas clients to cease such activities by June 30. The notice leaves no room for transitional arrangements and states that new licenses will be granted only under “extremely limited” conditions.

MAS crackdown sparks panic and job fears

The MAS decision has rattled many offshore crypto firms with substantial local teams. Arthur Cheong, founder and CIO of DeFiance Capital LLC, warned that hundreds of jobs could be at risk, as many exchanges have front-office teams — including business development and sales — stationed in Singapore to serve global clients.

“This is almost as good as an evacuation procedure,” said Patrick Tan, general counsel at blockchain analytics firm ChainArgos, which is not affected by the directive.

Chris Holland, a partner at Singapore-based consultancy HM, noted a surge in inquiries: “Calls are at all hours given the impact on businesses headquartered outside Singapore. Some are scrambling to understand their exposure and risks.”

Singapore has long marketed itself as a regulated, innovation-friendly crypto hub, drawing major players like Coinbase and Crypto.com to set up regional operations. However, the city-state also continues to bear the scars of the 2022 market crash, which collapsed several high-profile local crypto ventures. In response, MAS has grown increasingly hawkish, tightening oversight while discouraging retail crypto speculation and limiting advertising.

The May directive builds on the Financial Services and Markets Act of 2022, where MAS had already signaled its intention to rein in unlicensed digital asset providers. In a follow-up on June 6, MAS stated that only a “very small” number of providers would be directly affected — yet firms remain unclear about how the rules apply to hybrid or decentralized operation models.

Regulators close in as offshore crypto firms scramble to define operations

The opaque structures of many offshore exchanges have long complicated Singapore’s crypto compliance environment. Grace Chong, head of financial regulatory practice at Drew & Napier LLC, noted that companies leveraging Singapore-based staff to support foreign operations — without clearly defined boundaries — occupy a legal “gray area.”

For its part, MAS maintains that it has consistently communicated its expectations. “This move should not come as a surprise,” said an MAS spokesperson. “Entities already licensed are not affected by this latest guidance.”

Still, the sudden enforcement has caught some off guard. Unlike licensed players, offshore entities will now need to make swift adjustments or face possible enforcement actions.

Exchanges like Binance, which has been on MAS’s investor alert list since 2021, represent how difficult regulatory navigation has become. Binance CEO Richard Teng has described the firm as “remote-first,” adding that discussions about a global headquarters remain ongoing. A Binance spokesperson reiterated the exchange’s intent to comply with local regulations globally but offered no details on its Singapore operations.

As MAS tightens the net, other jurisdictions like Dubai, Hong Kong, and even Australia are emerging as alternative bases for crypto firms forced to adapt — or flee.

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