Singapore’s latest order for unlicensed crypto firms to prevent service to foreign customers marks the beginning of the end for regulatory flaws in the blockchain industry.
The instructions of the Monet Authority of Singapore (MAS) reveal the May 30 to offer services abroad to obtain or exit the Crypto firms and individuals.
For some people in the industry, it may seem that Singapore is suddenly getting away from its crypto-friendly stance. But in fact, city-state has been consistent in its push for compliance. The step is aligning with a global crack for the purpose of money laundering and financing terrorism.
A Hong Kong lawyer and co-chairman of the city’s web 3 association, Joshua Chu, told, “The regulatory pinball for exchanges is still looking for flaws to avoid lysancing requirements-the abolition is clear: they will soon be found to transfer their favorite destination, moon,” Joshua Chu, ” The association’s co-chairman told the coinaligraf.
“There is no one to avoid global push for compliance with courts such as Singapore, Thailand, Dubai, Hong Kong and others to tighten the oversight and closing gaps.”
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Singapore Crypto has been a favorable center for regulator arbitration, thanks for this Payment Services Act (PSA)Which requires licensing for local customers serving firms.
With relatively small Domestic population Out of about 6 million, many crypto companies opted for licensing licensing by avoiding Singapore customers and focusing on foreign markets instead, noted YK Peck, CEO and co-founder of legal tech firm GVRN, on X.
While some recently interpret MAS to get out crypto firms out without license 2022 Financial Services and Markets Act (FSMA) On a tight time frame as a sharp policy reversed, the regulator said that it maintained a stable stance.
The Central Bank at the Central Bank said, “The MAS ‘status on it has been consecutively interacted for a few years since the first response to public consultation issued on 14 February 2022 and the later publications on 4 October 2024 and 30 May 2025.” Said In a statement of June 6.
FSMA State america Any business in Singapore should be offered digital token services to customers abroad. The law has not been changed. Instead, the MAS has completed public consultation and is informing service providers that their unlicensed term is over.
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“I think we need to recognize that Singapore is the first and a global financial center, not necessarily a crypto,” Patrick Tan, General Advocate in Changergos, who was one of the respondents MAS ConsultationTold cointelegraph.
He said, “Given the terms of strict crypto-asset licensing globally, organizations will need to reflect what they want to get from a license,” he said.
Hong Kong does not guarantee any guarantee for Singapore’s Crypto Outcast
As the firms weigh their next step, speculation is increasing on the fact that jurisdiction may be more attractive. Recent developments suggest that Singapore is not an outsider but part of a global regulatory change.
For example, the Philippines now require all licensed crypto firms to maintain a physical office in the country. Thailand has recently expelled at least five exchanges on licensing and money laundering concerns, giving investors to transfer their assets by June 28.
A destination that has emerged as an alternative is the regional rival of Hong Kong, Singapore. Two courts are often compared to the so -called crypto hub race.
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Hong Kong is also considered by Baibit, one of the recently expelled exchanges from Thailand. A job posting by Bibit, who demanded a licensed lawyer in Hong Kong appeared The Securities and Exchange Commission of Thailand announced that the company would be blocked.
A spokesperson for a baibit confirmed the coinlagraph that Hong Kong is one of the jurisdiction under consideration for future licenses, saying that the company is working with regulators in various countries. ” There is also exchange hiring For a similar role in Malaysia.
The industry is learning that being a “crypto hub” often means tight yet clear regulatory structure. Neither Hong Kong nor Singapore have taken a lose-fair approach. In fact, Hong Kong went first, ordered all unlicensed exchanges to get out of the market in mid -2012.
The firms who have been pivsing for Hong Kong may know that fewer companies have been successful in obtaining licenses there. By 6 June, the city had issued only 10 crypto licenses compared to 33 digital payments tokens licenses. allowed By MAS under PSA.
“Looking forward, we estimate adjacent to regulatory functions from other major crypto centers including Hong Kong, the European Union, the developed Crupto Act of the European Union, the United Kingdom, with our melodors (markets in the Crypto-assets), South Korea and Japan-South Korea and Japan-S-S-S-S-S-S-S-S-S-Task Force (Financial Action Task Force) Member or Matalys with Registration,” said “with” Chu.
Singapore is among 40 FATF members
Singapore’s FSMA expanded regulatory monitoring of crypto service providers, especially those who serve foreign customers. The Act supplies the PSA and was introduced in part to align with the Financial Action Task Force (FATF) mandate on the travel rules and anti-land laundering (AML) standards.
The regulator intensified after the speed of alignment Fatf’s February plane sessionWhich launched public consultation on improving payment transparency and addressing complex trails used for money laundering and theft of restrictions.
“Dubai (Virtual Assets Regulatory Authority) released its Rulebook 2.0 soon after the plane, implemented strict AML protocol with a time limit of June 1 (19), which reflects its alert approach after removing the gray list,” Chu said.
For FATF members like Singapore and Hong Kong, AML is expected to tighten the standards. But for non-members who decrease from compliance, including FATF gray list can be economically disastrous. For example, a report by the think tank Tabadlab estimated Pakistan’s placement on the FATF gray list between 2008 and 2019 led to a cumulative actual gross domestic product deficit of about $ 38 billion.
https://www.youtube.com/watch?v=rcxz0i2sdqm
Elisa de Enda Madarazo, president of FATF of Mexico, has strengthened one of his two -year tenure preferences for virtual assets. Source: FATF/YouTube
In addition to tightening its crypto regulations recently, they have to remove them from the FATF gray list, another common ruler between Thailand, the Philippines and the United Arab Emirates. Thailand was remove in 2013, UAE In 2024 and Philippines In 2025. According to Chu, the jurisdiction that exiting the gray list often serve “extra hard” to close it.
UAE’s emerging financial center Dubai has been a magnet for Crypto businesses due to its favorable rules and dedicated regulators, but legal experts have warned the ecosystem against misconception.
Chu said, “Dubai bus (gray list) was not long ago and is in the probation list.” “So, the characters who think that they are safe in Dubai may be in a false sense of security.”
This means that the era of hoping the courts to dodge the regulation is getting closer. As the crypto firms discover their next base, the list of friendly but liberal destinations is shrinking, and even the most welcome hub is demanding compliance.
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