According to an official employed in the UAE’s International Free Zone Authority (IFZA), major digital-asset exchanges are thinking about relocating to Dubai and Hong Kong after Singapore implemented strict new regulations on international crypto activity.
Any crypto-services provider based in the city-state that serves international clients was required by the Monetary Authority of Singapore last month to either get a Digital-Token Service Provider licence by June 30, 2025, or stop operating. With no grace period or “small-player” exemption, noncompliance could result in fines of up to SGD 250,000 (Dhs734,500) and three years in jail.
The founder and CEO of blockchain consultancy Antier, Vikram R. Singh, who recently expanded its activities in IFZA Dubai, stated, “This is effectively a moratorium on fresh licenses, hence the migration — or crypto exodus.”
Singh pointed out that the UAE has spent three years creating a specific set of rules for digital assets, whilst Singapore “tightens the screws.” According to consulting firm Sumsub, the nation saw a regional record $30 billion in cryptocurrency investment in 2024. Companies in free zones may frequently lower the new 9% federal corporation tax to almost nil if the majority of their activity is done outside the Emirates, while individual investors in the UAE are exempt from income and capital gains taxes on cryptocurrency earnings.
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