The latest request to Singapore for unlicensed encryption companies to stop serving customer abroad is the beginning of the end of the organizational gaps in the Blockchain industry.
May 30 is directed by the monetary authority in Singapore (MAS) informs the encryption companies and individuals Providing services abroad to obtain a license or exit.
For some in this industry, it may seem that Singapore is suddenly running out of her friendly position on encryption. But in reality, the city remained consistent in pushing it to comply. This step is in line with a global suppression campaign aimed at money laundering and terrorist financing.
“For exchanges that still play the ball and organizational pins-they are constantly striving to obtain gaps to avoid licensing requirements-they will soon find that they move to their favorite destination, the moon,” said Joshua Zhu, Hong Kong’s lawyer and co-chair of the city association in the city.
“With the judicial states such as Singapore, Thailand, Dubai, Hong Kong and other optional supervision and gaps, there is no simply escaping from the global batch for compliance.”
Next in Singapore, Crypto Nomads run out of the road
Singapore was a positive center for organizational arbitration in encryption, thanks PSA Payment Services Law (PSA)Which requires licensing companies that serve local customers.
With relatively small Local population Of the about 6 million, many encryption companies have chosen to get rid of the license by simply avoiding Singaporean customers and focusing on foreign markets instead, instead. male YK Pek, CEO and co -founder of GVRN Legal Technology, on X.
While some explain that MAS moved the latter to topple unlicensed encryption companies under 2022 The Financial Services and Markets Law (FSMA) On the tight deadline as the opposite of the sharp policy, the organizer said that he maintained a fixed position.
“The position of MAS has been constantly connected to a few years since the first response to the general advice issued on February 14, 2022 and in subsequent publications on October 4, 2024 and May 30, 2025,” the central bank ” He said In the June 6 statement.
FSMA States Any work in Singapore should provide numerical symbolic services to customers abroad. The law has not changed. Instead, MAS completed the general consultations and informed service providers that her unlicensed work period has ended.
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“I think we need to realize that Singapore is first and foremost a global financial center, not necessarily encrypted,” Patrick Tan, General Adviser to Chainargos, who was among the respondents in Diaming consultingCointelegraph said.
He added: “Given the conditions for licensing encrypted assets more stringent in the world, institutions will need to think about what they seek to obtain from the license.”
Hong Kong does not offer any guarantees for the encryption in Singapore
Since companies weigh their next movement, speculation is increasing about what the judicial states may become more attractive. Recent developments indicate that Singapore is not strange but part of a global organizational transformation.
The Philippines, for example, now requires all licensed encryption companies Keep a physical office In the country. Thailand recently Earning at least five exchanges On licensing concerns and money laundering, granting investors until June 28 to transfer their assets.
One of the destination that appeared as an option is Hong Kong, the regional competition of Singapore. Specialists are often compared to the encryption axis race.
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Hong Kong is also seen by bybit, one of the recently expelled exchanges from Thailand. A post by premit seeks to obtain a license consultant in Hong Kong back A few days after the Securities and Stock Exchange Committee announced in Thailand, the company will be banned.
A BYBIT spokesman told CointeleGraph that Hong Kong is one of the judicial states under consideration of future licenses, adding that the company “is working with organizers in various countries.” Exchange also Recruitment For a similar role in Malaysia.
Industry is learning that being a “encryption center” often means facing more compact organizational frameworks. Hong Kong and Singapore did not follow a deceptive approach. In fact, Hong Kong moved earlier, Request all unlicensed stock exchanges To leave the market in mid -2014.
Companies looking for the axis to Hong Kong may find that less companies have succeeded in securing licenses there. As of June 6, the city issued only 10 encryption licenses, compared to 33 digital payment code licenses consent By MAS under PSA.
“We look forward to the future, we expect organizational measures other than other major encryption centers including Hong Kong, the European Union with Mika [Markets in Crypto-Assets] The framework, advanced encryption laws in the United Kingdom, South Korea, and Japan – are all committed [Financial Action Task Force] “Members who suffer from mature or mature regulations,” said Zhu.
Singapore is among 40 FATF members
FSMA in Singapore has expanded the organizational supervision of encryption services providers, especially those who serve customers abroad. The PSA law completes and is partially submitted to compatible with the financial workplace’s delegations (FATF) on Travel base And anti -money laundering standards (AML).
The organizational alignment pace has accelerated yet FATF session in FebruaryWhich launched general consultations on improving the transparency of payment and treating the complex paths used to money laundering and evading penalties.
“Dubai [Virtual Assets Regulatory Authority] I released the Bases Book 2.0 shortly after the plenary session, and the imposition of more strict AML protocols with June [19] The deadline complianceZhu noted that her caution reflects after removing the gray menu.
For FATF members such as Singapore and Hong Kong, AML standards are expected. But for non -members who lack compliance, the inclusion in the FATF GRAY menu can be economically destroyed. For example, a report issued by Tank Tabadlab estimated Pakistan’s position on the FATF GRAY list between 2008 and 2019 led to the cumulative GDP losses of about $ 38 billion.
https://www.youtube.com/watch?
FATF President Elisa de Anda Madrazo of Mexico provided promotion criteria for virtual assets, one of the priorities of her mandate for two years. source: FATF/YouTube
Regardless of the recent tightening of their encryption regulations, another common denominator between Thailand, the Philippines and the United Arab Emirates is to remove them from the FATF GRAY menu. It was Thailand to cross out In 2013, and The UAE In 2024 and Philipini In 2025, according to Chu, the judicial authorities that come out of the gray list often work “difficult” to stay away from it.
Dubai, the emerging financial center in the United Arab Emirates, was a magnet for encryption companies because of its friendly rules and the dedicated organizer, but legal experts warn of misunderstanding the ecological system.
Dubai has just came out [the gray list] “Therefore, not so long ago, it is in the observation list. The characters that you think may be safe in Dubai may be a wrong security sense,” said Zhu.
This means that the era of judicial jump to get rid of the regulations is to approach its end. While the encryption companies are looking for their next base, the list of friendly destinations is shrinking, and even the most welcome centers require compliance.
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