Singapore’s latest order for unlicensed crypto firms to stop serving overseas customers marks the beginning of the end for regulatory loopholes in the blockchain industry.

The May 30 directive from the Monetary Authority of Singapore (MAS) tells crypto firms and individuals offering services abroad to get licensed or get out.

To some in the industry, it may look like Singapore is suddenly turning away from its crypto-friendly stance. But in reality, the city-state has remained consistent in its push for compliance. The move aligns with a global crackdown aimed at money laundering and terrorism financing.

“For exchanges still playing regulatory pinball — constantly seeking loopholes to avoid licensing requirements — the reality is clear: They will soon find themselves having to relocate to their favorite destination, the moon,” Joshua Chu, a Hong Kong-based lawyer and co-chair of the city’s Web3 association, told Cointelegraph.

“With jurisdictions like Singapore, Thailand, Dubai, Hong Kong and others tightening oversight and closing gaps, there’s simply no escaping the global push for compliance.”

Exiled in Singapore, crypto nomads run out of road

Singapore has been a favorable hub for regulatory arbitrage in crypto, thanks to its Payment Services Act (PSA), which requires licensing for firms serving local clients. 

With a relatively small domestic population of around 6 million, many crypto companies opted to sidestep licensing by simply avoiding Singaporean customers and focusing on overseas markets instead, noted YK Pek, CEO and co-founder of the legal tech firm GVRN, on X.

While some interpret the recent MAS move to oust unlicensed crypto firms under the 2022 Financial Services and Markets Act (FSMA) on a tight deadline as a sharp policy reversal, the regulator said it has maintained a steady stance.

“MAS’ position on this has been consistently communicated for a few years since the first response to public consultation issued on 14 February 2022 and in subsequent publications on 4 October 2024 and 30 May 2025,” the central bank said in a June 6 statement.

The FSMA states that any business in Singapore offering digital token services to clients overseas must be licensed. The law has not been changed. Rather, the MAS has completed public consultations and is notifying service providers that their unlicensed tenure is over.