MAS Warning Prompts Unlicensed Crypto Exchanges to Plan Singapore Exits

The Monetary Authority of Singapore (MAS) has issued a final warning to unlicensed cryptocurrency exchanges operating in the city-state, prompting major players to plan their departure. Effective June 30, 2025, firms based in Singapore offering services solely to offshore customers, particularly those related to digital payment tokens and capital market product tokens, will require a license that MAS states it will grant only under "extremely limited" circumstances.

This regulatory action is affecting firms like Bitget and Bybit, both top-10 global exchange operators by volume with a presence in Singapore but lacking local licenses. Sources indicate that Bitget is reorganizing staff, with plans to move personnel to jurisdictions including Dubai and Hong Kong, while Bybit is considering similar relocations. Industry figures have described the move as "quite severe," potentially impacting hundreds of jobs, as MAS cited higher money laundering risks and supervisory challenges with offshore-only business models.

The MAS clarified that its regulation covers firms with front-office functions in Singapore or those serving overseas customers, while emphasizing that licensed entities are not affected by this new directive. The regulator has consistently communicated its position on such service providers. While MAS noted that only a "very small" number of providers would be directly impacted, questions remain for some firms operating in "grey areas," such as those with Singapore-based teams supporting offshore operations without clear service delineation.