Singapore warning prompts unlicensed crypto exchanges to exit

Singapore’s regulatory actions have led unlicensed cryptocurrency exchanges, including Bitget and Bybit, to consider relocating their operations.

The Monetary Authority of Singapore (MAS) issued a final notice on May 30, requiring these firms to stop offshore activities by June 30, 2025.

Bitget is looking into moving staff to locations such as Dubai and Hong Kong.

Bybit is assessing similar options, according to sources familiar with the situation. Both exchanges rank among the top 10 globally in trading volume but do not hold local licenses to operate in Singapore.

MAS clarified that the notice affects firms engaged in sales, business development, or servicing overseas customers from Singapore. Licensed entities will not be impacted by the new regulations.

The regulator emphasized its ongoing communication regarding unlicensed service providers.

This regulatory move follows warnings under the Financial Services and Markets Act of 2022, aimed at reducing unlicensed crypto activities. MAS said that the new rules would affect a “very small” number of providers; however, industry insiders highlight uncertainties.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Singapore’s crypto crackdown continues a seven-year regulatory evolution

Singapore’s current enforcement action against unlicensed exchanges represents the culmination of a long regulatory journey rather than a sudden policy shift.

The Monetary Authority of Singapore (MAS) first cautioned the public against cryptocurrency investments in December 2017, highlighting that cryptocurrencies were not legal tender and warning that price surges were primarily driven by speculation1.

This cautious approach evolved into more structured regulation with the 2020 Payment Services Act, which established licensing requirements for digital token service providers and imposed anti-money laundering standards2.

The current June 30 deadline stems from the Financial Services and Markets Act passed in April 2022, demonstrating that Singapore has been methodically building its regulatory framework for years3.

This regulatory consistency explains why established players like Coinbase and Crypto.com mentioned in the article have successfully secured licenses while offshore exchanges now face compliance challenges.