Asia’s Crypto Epicenter Is Moving From Singapore to Dubai and Hong Kong

Until recently, Singapore was the beating heart of Asia’s crypto and blockchain boom. Entrepreneurs, digital asset giants, and VCs flocked to the Lion City, attracted by its robust infrastructure, regulatory clarity, and reputation as a hub of innovation. Companies like Binance, Crypto.com, and Matrixport all chose Singapore as their base for the Asia-Pacific region, helping to shape a dynamic, international ecosystem. But the rules of the game are changing fast.

In June 2025, a regulatory milestone quietly reshaped the global crypto landscape. Singapore’s Monetary Authority (MAS) enforced strict new licensing rules requiring all digital token service providers (DTSPs) registered there, but serving exclusively foreign clients, to secure full licenses or cease operations immediately. At face value, the rules came into play on June 30, 2025. So why is this story exploding now, months later? Because the aftermath is only just beginning to crystallize.

The Regulatory Shift

Under Singapore’s Financial Services and Markets Act 2022, MAS curtailed regulatory arbitrage by blocking firms that use Singapore’s jurisdiction primarily for offshore crypto business without meaningful local consumer involvement. The regulator stated it would “generally not issue a license” to firms targeting only foreign clients, citing heightened money laundering and terrorism financing concerns.

This meant many firms (some exchanges, brokerages, and crypto service providers) operating “ghost” setups in Singapore had mere months to comply or exit.

While the deadline passed quietly, the real significance emerges in the weeks and months afterward due to several reasons:

First, businesses need time to adjust. Crypto firms operate globally with complex regional partnerships, staff, infrastructure, and customer bases. Relocations and licensing negotiations take significant time. Many companies only began announcing major moves—relocating offices, setting up licensing arms, or winding down Singapore operations in July and August 2025.

Second, enforcement and public clarity have accelerated recently. MAS, together with overseas regulators in Dubai, Hong Kong, and elsewhere, has started actively enforcing new rules through license refusals, shutdowns, and public warnings. That sharpens the picture around who’s staying, who’s going, and who’s expanding.

Who’s Heading for the Exit?

Many of Singapore’s headline crypto names are exploring greener pastures:

• Bitget has scaled back Singapore operations and ramped up in Dubai.

• Industry giants like OKX and Bybit now have regional growth strategies centered firmly on the UAE, picking up preliminary licenses and laying out plans to serve global clients from Dubai’s more open regime.

• Meanwhile, Matrixport and others are beefing up their Hong Kong presence, emboldened by that city’s latest pro-crypto policies and growing ties to mainland China’s digital finance push.

It’s not just major exchanges; compliance specialists, engineering talent, and venture investors are following the flow, as regulatory geography becomes a driving factor in the global blockchain race.

Why Dubai and Hong Kong Stand Out Now

Unlike Singapore’s tightening grip, Dubai and Hong Kong are actively rolling out the welcome mat for crypto ventures.

Dubai boasts:

• The Virtual Asset Regulatory Authority (VARA): a dedicated, purpose-built regulator for digital assets.

• Standout tax policies (zero capital gains and very light corporate taxes).

• Government programs like the Dubai Metaverse Strategy, targeting tens of thousands of virtual jobs and cementing the city’s status as a digital pioneer.

Hong Kong:

• Recently enacted stablecoin and virtual asset service provider (VASP) licenses, signalling an institutional embrace of digital finance.

• Actively encouraging cross-border digital asset flows—particularly with mainland China—to position itself as the center of Asian crypto capital.

For businesses, Dubai and Hong Kong offer pragmatic regulation, speedier licensing, and friendlier conditions for risk-taking and innovation. Exchanges from Binance to Crypto.com have moved swiftly.

Yet, there are risks to this great migration. Critics warn that a regulatory “race to the bottom” might invite future shocks or scandals. But supportive policy also spurs investment, experimentation, and breakthroughs, which could ultimately set global standards. In the long arc of digital asset adoption, these hubs will shape blockchain’s next great chapter.

Who Benefits from Singapore’s Tougher Stance?

Though hailed as a hurdle for startups, these new rules serve important, long-term objectives:

• Enhancing Investor Protection: Prevents unregulated firms from exposing consumers to fraudulent or high-risk products.

• Fighting Financial Crime: Curtails regulatory arbitrage that has made crypto vulnerable to money laundering and illicit financing.

• Strengthening Singapore’s Reputation: Signals MAS’s commitment to high regulatory standards, reinforcing its status as a secure and credible financial center.

What This Means Going Forward

Crypto firms face a critical balancing act: compliance and global expansion amid shifting regulatory landscapes. The migration to Dubai and Hong Kong is accelerating but Singapore’s regulatory fervor lays down a long-term blueprint for responsible blockchain finance.