The Monetary Authority of Singapore (MAS) has issued a final and uncompromising warning to crypto exchanges operating without a local Digital Payment Token (DPT) license, requiring them to cease all operations targeting Singapore-based users by June 30, 2024. This regulatory crackdown has prompted major offshore crypto exchanges, notably Bybit and Bitget, to plan the exit of their Singapore operations.
MAS’s directive explicitly forbids firms from serving local customers via offshore entities if they maintain operations or staff in Singapore without the necessary license. Bybit and Bitget are reportedly preparing to wind down their local services and relocate staff to more crypto-friendly jurisdictions such as Dubai and Hong Kong. The regulator also signaled that granting new licenses will only occur in very limited cases, hinting at a slowdown in the growth of licensed crypto firms in the region.
This move aligns with global trends of tighter crypto regulation aimed at consumer protection, anti-money laundering, financial stability, and market integrity. The MAS’s decisive enforcement underscores its commitment to a clear and robust regulatory framework, which it believes is essential to maintain Singapore’s reputation as a well-regulated financial hub.
The exit of Bybit and Bitget raises concerns about Singapore’s accessibility for crypto firms preferring less stringent or transitional regulatory environments, but it also presents opportunities for exchanges fully compliant with local laws. The rapid timeline—less than a month from warning to mandatory cessation—poses logistical and reputational challenges for affected firms and highlights the increasing necessity for crypto businesses to achieve regulatory compliance for sustained operations in significant markets.
For users in Singapore, the development stresses the importance of verifying that crypto service providers are licensed by MAS to ensure protection and legal certainty. Meanwhile, crypto firms globally are reminded to prioritize securing appropriate licenses and engaging with regulators to navigate increasingly complex regulatory landscapes.