In a swift move that’s resonated across the crypto landscape, Singapore has decisively ousted unlicensed cryptocurrency firms from its jurisdiction. As of June 2025, this regulatory shake-up reflects a growing trend among global financial hubs to tighten their licensing requirements and establish firmer control over digital asset markets.
A Shifting Regulatory Landscape
Singapore’s recent crackdown is not occurring in isolation. It’s part of a broader global narrative where regulators are increasingly vigilant about the crypto industry’s proliferation. Countries like the U.S. and UK have similarly ramped up their oversight, leaving crypto firms scrambling to adapt or relocate. According to James Tan, a crypto analyst based in Kuala Lumpur, “This isn’t just about compliance; it’s about survival. Firms need to think strategically about where they can operate within the bounds of the law.” For more on the UK’s approach, see UK’s FCA Seeks Public and Industry Views on Crypto Regulation.
The Monetary Authority of Singapore (MAS) has been steadfast in its commitment to regulating the industry, arguably setting a precedent for others to follow. The decision to expel firms lacking appropriate licenses echoes Singapore’s dedication to maintaining a secure and transparent financial ecosystem. “Singapore isn’t closing its doors to crypto,” notes Tan, “but it’s clear that they want only the most reliable players on their turf.”
The Global Ripple Effect
So, where does this leave the displaced firms? Finding a new home in the crypto world is no small feat. With regulatory nets tightening globally, many jurisdictions that once welcomed the decentralized finance sector with open arms are now echoing Singapore’s cautious approach. The European Union, for instance, has implemented the Markets in Crypto-Assets Regulation (MiCA), a comprehensive framework that could deter firms without the resources to meet stringent requirements.
Yet, not all regions are following suit. Some countries in Southeast Asia and parts of Latin America appear more lenient, hoping to attract talent and innovation by offering less restrictive environments. However, these places carry their own risks—ranging from political instability to underdeveloped financial infrastructures—that could deter firms seeking long-term stability.
According to Clara Ng, a blockchain consultant in Hong Kong, “Emerging markets might seem like a haven, but firms need to weigh the potential regulatory shifts that could occur overnight.” She adds, “The grass isn’t always greener on the other side.”
Historical Context and Market Trends
Historically, Singapore has been a beacon for financial innovation. Its strategic location and robust infrastructure have made it a magnet for tech-savvy entrepreneurs. Yet, this latest move signals a pivot towards more controlled growth, perhaps a necessary measure given the sector’s rapid evolution and the associated risks.
The crypto market itself has been on a rollercoaster over the past few years, with volatility becoming a hallmark trait. Decentralized finance (DeFi), non-fungible tokens (NFTs), and other blockchain innovations have surged, attracting both investors and scammers alike. Singapore’s action can be seen as an effort to safeguard its financial system against such volatility, ensuring that only well-regulated entities can participate in its crypto ecosystem. This aligns with the ‘Huge Shift’ in crypto firms’ compliance mindset, says Elliptic co-founder, highlighting the industry’s evolving approach to regulation.
Looking Ahead
As we stand in June 2025, the future of crypto firms in Singapore—and indeed the world—remains a subject of intense speculation. Will other nations mimic Singapore’s stringent policies, or will we see a divergence, with some opting for more laissez-faire approaches? The answers are still unfolding.
There’s a tangible sense of urgency among industry players to adapt swiftly to these regulatory changes. Some firms are already seeking licenses in multiple jurisdictions as a hedge against future crackdowns. Meanwhile, others are investing in compliance infrastructure to meet the growing demands of a regulated market.
The narrative is still being written, and as it unfolds, it raises intriguing questions about the balance between innovation and regulation. For now, crypto firms must navigate this complex landscape with agility and foresight, all while keeping an eye on the horizon for the next regulatory wave.
Source
This article is based on: Singapore’s ousted crypto firms may not find shelter elsewhere
Further Reading
Deepen your understanding with these related articles:
- The SEC Can Learn From the IRS in Making Regulation Simpler for Crypto
- U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer (openai)
- US crypto groups urge SEC for clarity on staking
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
