As global hubs take diverging paths, a major crypto regulation shift is reshaping where startups and investors place their bets. This month, Singapore tightened its rules for crypto startups, while Dubai is opening its doors wider to digital asset businesses. For investors and founders alike, these changes could impact decisions on where to launch or grow a crypto venture. Here’s what you need to know.
Singapore Gets Tough on Crypto Players
Singapore has long been known as a forward-thinking fintech hub. But its latest crypto regulations signal a shift toward more stringent oversight, especially for startups that offer services abroad.
As of June 30, 2025, all Digital Token Service Providers (DTSPs) operating outside of Singapore must be fully licensed under the Payment Services Act. What’s notable is that no grace period will be offered—unlicensed players will have to halt their overseas operations immediately.
The Monetary Authority of Singapore (MAS) says the goal is to ensure that crypto firms uphold strong anti-money laundering (AML) and counter-terrorism financing (CFT) standards, no matter where their customers are located.
Stricter Compliance Rules Coming Into Play
The licensing process in Singapore is far from light-touch. Startups must now:
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Hold at least SGD 250,000 in capital
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Segregate customer funds from operating capital
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Pass AML/CFT audits
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Pay an annual license fee (approx. SGD 10,000)
Additionally, Singapore has rolled out measures to protect retail investors, such as banning crypto purchases with credit cards, restricting the use of leverage, and requiring customers to pass risk-awareness tests before trading.
These rules aim to curb speculative behavior and protect consumers from volatile market swings—but they also raise the compliance bar significantly.
Smaller Startups May Look Elsewhere
Larger exchanges like Coinbase, Gemini, Circle, and OKX have successfully met Singapore’s licensing demands and are likely to benefit from increased investor trust.
However, for smaller crypto startups, the new costs and operational requirements may prove too burdensome. Some are already shifting operations to more welcoming jurisdictions—including Dubai and Hong Kong.
Dubai Rolls Out the Red Carpet
In contrast to Singapore’s tightening stance, Dubai continues to promote itself as a crypto-friendly destination. The emirate’s Virtual Assets Regulatory Authority (VARA) recently updated its framework to provide greater clarity and flexibility for digital asset firms.
Dubai offers several advantages for startups:
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No corporate or personal income tax
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Faster licensing processes
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Pro-business policies
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A growing network of blockchain-friendly free zones like DMCC Crypto Centre
It’s no surprise that major exchanges such as Bybit and Bitget have recently moved key staff and operations to Dubai, viewing it as a regional launchpad with fewer barriers.
A Word of Caution for Dubai
While Dubai is appealing, it’s not without oversight. The UAE has been working closely with international bodies to improve AML enforcement, especially after its recent removal from the FATF grey list.
Local regulators are watching foreign crypto flows more closely—particularly those linked to real estate and high-value assets. Startups and investors must still prioritize compliance, especially as global standards tighten.
What Should Investors Consider?
Before making any moves, investors and crypto founders should weigh the regulatory pros and cons of each region.
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Singapore: Best suited for institutional investors and established players who can meet high regulatory standards. Offers security, but at a cost.
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Dubai: Welcoming and dynamic, ideal for startups and entrepreneurs—but still evolving and may require careful navigation of compliance updates.
Whether you’re backing a new crypto project or expanding your business footprint, it’s important to balance opportunity with regulatory risk.
Final Thoughts
Crypto may be global, but regulations are local—and increasingly divergent. Singapore’s latest move reflects a growing trend of regulatory maturity, while Dubai’s open-arms approach highlights its ambition to lead in Web3 innovation.
For savvy investors, understanding both landscapes is key. The decision isn’t just about where it’s easier to operate—but where it’s safer and smarter to grow.
Stay informed, do your due diligence, and always look beyond the headline.