Crypto exchanges eye Dubai, HK as Singapore clampdown prompts exodus

 Major digital-asset exchanges are considering moves to Dubai and Hong Kong after Singapore introduced stringent new rules on overseas crypto activity, according to an executive based in the UAE’s International Free Zone Authority (IFZA).

Last month the Monetary Authority of Singapore ordered any crypto-services provider incorporated in the city-state and serving foreign clients to obtain a Digital-Token Service Provider licence by June 30, 2025 or cease those activities. Non-compliance could incur fines of up to SGD 250,000 (Dhs734,500) and three years’ imprisonment, with no grace period or “small-player” exemption.

“This is effectively a moratorium on fresh licences, hence the migration -- or crypto exodus,” said Vikram R Singh, founder and chief executive of blockchain consultancy Antier, which recently expanded its operations in IFZA Dubai.

While Singapore “tightens the screws”, Singh noted that the UAE has spent three years building a dedicated rule-book for digital assets. Consultancy Sumsub estimates the country attracted $30 billion in crypto investment during 2024, a regional record.

Individual investors in the UAE pay no income or capital-gains tax on crypto profits, and companies in free zones can often reduce the new 9% federal corporate tax to near zero if most business is conducted outside the Emirates.

Regulation is flexible too. Federal bodies supervise mainland activity, but free-zone regulators in Dubai, the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) run their own crypto frameworks, allowing founders to “pick the regulator that fits the business model”, Singh added.

Dubai’s credentials were underscored in April when TOKEN2049 drew about 15,000 delegates from 4,000 companies -- the world’s largest crypto gathering. Local capital is also flowing: Emirates NBD’s Liv digital bank and Abu Dhabi’s MGX fund are backing plans for a 30-storey “Crypto Tower” in the Dubai Multi Commodities Centre.

The Dubai Financial Services Authority has recently issued guidance on tokenised securities and real-world assets, paving the way for wider institutional adoption. Antier says it is already working with UAE partners to build tokenised-asset marketplaces aligned with the emirate’s digital-asset strategy.

“Dubai’s proactive stance perfectly matches our real-world-asset tokenisation and digital-asset trading infrastructure,” Singh said.

“As tokenisation reshapes global finance, we intend to provide the bridge between traditional markets and Web3.”

With Singapore’s stricter rules now in force, observers expect licence-seeking crypto firms to relocate to Dubai, reinforcing the emirate’s ambition to become a leading global hub for digital assets.