Singapore's new crypto licensing rules took effect on June 30, 2025, requiring all crypto firms, including those serving only foreign clients, to secure licenses or cease operations. This regulatory shift, enacted under the Financial Services and Markets Act, aims to enhance oversight by enforcing anti-money laundering measures, appointing local compliance officers, and conducting cybersecurity audits. Penalties for non-compliance include substantial fines and possible imprisonment. Major exchanges like Bitget and Bybit are reportedly considering relocating to more lenient regulatory environments such as Dubai or Hong Kong, highlighting an industry exodus triggered by these stricter regulations. Experts underscore that while Singapore's approach aims to maintain the integrity of its financial system, it may lead to a decline in crypto business within the country. The Monetary Authority of Singapore (MAS) emphasizes the importance of proper licensing and operational soundness rather than mere compliance on paper, reinforcing a model of credible, substance-based regulation.

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