Singapore Tightens Crypto Rules: Bitget, Bybit Plan Exit Amid Crackdown

Singapore is tightening its grip on crypto firms operating without a license, and the impact is already being felt across the industry. On May 30, the Monetary Authority of Singapore (MAS) issued a final notice requiring unlicensed digital asset exchanges with operations in Singapore and overseas clients to shut down by June 30, according to a Bloomberg report.

With no grace period and strict limitations on new licenses, some of the largest offshore players—including Bitget and Bybit—are now preparing to exit the country and relocate staff to more crypto-friendly hubs like Dubai and Hong Kong.

Exit or Comply: The Pressure Builds

MAS’s firm stance targets firms that run front-office functions such as sales or client services from Singapore while serving foreign users. Though the regulation affects only a “minimal” number of companies, according to the regulator’s June 6 clarification, the impact is outsized, potentially jeopardizing hundreds of jobs. Arthur Cheong of DeFiance Capital noted that many of these offshore firms have sizeable teams based in Singapore.

Bitget and Bybit, both ranked among the world’s top exchanges by volume, are now scrambling to reorganize their teams. While MAS crypto crackdown stresses that its regulatory expectations have been made clear for years, firms now find themselves in a gray area, unsure whether they fall under the new rules or can continue with tweaks to their operations.

Crypto analyst Lana Yang calls out Singapore crypto regulation 2025 as a game of regulatory “whack-a-mole.” Regulatory pressure is pushing exchanges like Bitget to relocate to places like Dubai and Hong Kong. She pointed out that this move might not stop the crypto activity but simply shift it elsewhere, making Bitget’s decision to relocate seem wise. Dubai 

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A Blow to Singapore’s Crypto Hub Status?

Despite being a global crypto hub and home to licensed giants like Coinbase and Crypto.com, Singapore remains cautious after previous market failures during the 2022 crypto downturn. The move may dent the city-state’s reputation as a digital asset haven, especially as competitors like Hong Kong try to woo the industry with clearer regulatory paths.

While some view the MAS notice as a long-expected clean-up, others see it as a regulatory chokehold. Legal experts believe that the lack of clarity around what constitutes “offshore services” could lead to confusion and case-by-case scrutiny.

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