The Monetary Authority of Singapore (MAS) recently officially announced that it will strengthen the supervision of digital asset services. Regardless of whether the company is targeting the local or overseas market, it must be licensed in accordance with the law. This policy adjustment has caused the Web3 industry to rethink its operating locations and compliance strategies, and has also brought a new round of layout opportunities for the Asian crypto industry.
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ToggleSingapore's attitude shifts from "open innovation" to "prudent governance"
Singapore has long attracted many Web3 entrepreneurs and capital institutions due to its stable financial system and inclusive innovation atmosphere. However, as global anti-money laundering (AML) and counter-terrorism financing (CFT) requirements for crypto assets increase, MAS is gradually moving towards a more prudent regulatory framework.
Under section 137 of the Financial Services and Markets Act (FSM Act) , MAS specifically requires:
Companies, individuals or partnerships registered in Singapore must apply for a DTSP license to provide digital token services (DT Services) regardless of whether they are domestic or overseas . Otherwise, they will face a fine of up to S$250,000 and a three-year prison sentence.
It is reported that the law has been under discussion since 2020, will be promulgated in 2022, and will officially take effect on June 30 this year, without a transition period. On the one hand, it emphasizes the clarity of MAS's regulatory stance, and on the other hand, it also puts some operators who have relied on "place of registration advantages" in the past but have not implemented a complete compliance plan under pressure to adjust their strategies.
Regulatory expansion: from physical operations to individual practitioners
A key point of the regulation is the extensibility of the definition of “business premises”. MAS pointed out:
Even shared offices, cafes, and even home spaces, as long as they are used for digital token business activities, could theoretically fall within the scope of regulation.
In addition, according to the First Schedule of the FSM Act, providing token-related advice or research reports is also a regulated act. This also requires individual practitioners such as analysts, KOLs, and content creators to re-examine their compliance risks.
However, MAS also clarified that if an individual is only employed remotely by an offshore company and does not actively conduct business in Singapore, it will not trigger the obligation to hold a license. Overall, MAS is not completely excluding digital asset operators, but is trying to draw a clear line between " operating entities " and " purely employed individuals ."
Singapore market exodus: crypto industry players weed out the dross and retain the best
Faced with MAS regulations, some operators chose to leave or relocate , and some KOLs described this adjustment as the " Web3 retreat ." But from a more comprehensive perspective, this wave of changes is more like Singapore's screening and filtering of the crypto industry.
Singapore remains highly attractive to teams that have long-term compliance plans and hope to integrate with the financial system. In particular, institutional-grade capital , market compliance products , and even bank-oriented crypto services can all operate robustly here.
However, Singapore’s compliance requirements have indeed raised the bar for projects with anonymous, decentralized operating models or projects that have not yet obtained a license. This has also prompted the industry to re-evaluate where to land in the most suitable place for their business attributes and regulatory tolerance.
Where is the next stop? Check out three potential locations
Hong Kong: Clear regulations but high threshold
As one of Asia's financial hubs, Hong Kong has actively promoted the virtual asset regulatory framework over the past year, including the introduction of a VASP licensing system and the regulation of stablecoins, sending a clear signal to the world that it embraces Web3.
Although relevant regulations are still being gradually improved, Hong Kong provides an environment with stable systems, similar language and culture, and financial resources and talent base for trading platforms with legal plans.
Dubai: A new hotspot for global capital
In contrast, Dubai attracts crypto institutions from around the world with its more open attitude and tax advantages. The UAE Virtual Asset Regulatory Authority (VARA) has rapidly established a licensing framework in recent years, which has attracted many offshore exchanges including Binance to settle down.
At the same time, Dubai's active capital market is very attractive for high-net-worth asset management, market making and cross-border fund dispatching. Even though the language and cultural connection with the Asian market is weak, Dubai is indeed a strong candidate for large platforms that want to expand their global layout.
Japan: Robust regulations but heavy tax burden
Japan has shown a clear and stable regulatory attitude. It has established an exchange registration system since 2017 to improve the predictability of corporate operations. Although high tax burdens have become an obstacle to development, the government is promoting the integration of Web3 with local cultural industries through tax reforms and policy support, attracting institutions such as Binance Japan to continue to deploy.
For teams that hope to delve deeper into cultural industries such as IP licensing, GameFi, and virtual idols, Japan also seems to have a good landing environment and development potential.
Restructuring of the crypto industry: towards differentiation and maturity
Singapore’s regulatory adjustment should not be simplified as “suppression” or “banning”, but rather an institutional evolution: “trying to align digital asset activities with traditional financial standards and strengthen protection for consumers and the global financial system.”
The future Web3 competition will no longer be about who has a higher valuation or who has a more compelling narrative, but about who can build a sustainable business model within the regulations. For teams that are truly willing to go hand in hand with regulation and embrace global compliance, this will be a new starting point.
Risk Warning
Cryptocurrency investment carries a high degree of risk. Its price may fluctuate drastically and you may lose all your capital. Please assess the risk carefully.
The U.S. Congress held a hearing on the "CLARITY Act" this morning on June 5 to clarify the division of responsibilities between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the supervision of crypto assets and platform operators. However, the scene lost focus due to U.S. President Donald Trump's layout of the crypto market, which caused controversy in the venue. Many Democratic lawmakers criticized Trump for suspected conflicts of interest, which delayed the progress of the bill review.
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ToggleKey Summary
- The CLARITY Act hearing was mainly intended to clarify the jurisdiction of the SEC and CFTC, but it lost focus due to Trump's layout in the crypto market.
- Many Democrats questioned Trump's intention to profit from currency and demanded that the bill include a "conflict of interest clause", otherwise they would not support it, resulting in a delay in the review process.
What is the CLARITY Act ?
The CLARITY Act, proposed by Republican House Financial Services Committee Chairman French Hill, includes:
Clearly divide the regulatory responsibilities of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for different types of crypto assets.
Cryptocurrency operators are required to make full disclosures to users, including how funds are used and whether there are segregated accounts for funds.
It is stipulated that the platform shall not use user funds to avoid the emergence of a financial black hole like the FTX exchange
The hearing lost focus due to Trump, and the conflict of interest in encryption led to heated debate between the two parties
Gregory Meeks, a Democratic congressman from New York, said at the meeting that Trump’s layout of the crypto market has seriously affected the legitimacy of legislation:
"We should be focusing on the bill, but now we are forced to discuss Trump's encryption behavior, which is completely out of focus."
The following are some of the events related to Trump’s layout of the crypto market:
Launched the personally endorsed crypto project World Liberty Financial
Issue Trump coin TRUMP and Mrs. Trump coin MELANIA
- Inviting Trumpcoin big holders to a private dinner, further angering Democratic lawmakers
Jim Himes, a Connecticut Democrat, said:
"I would have supported this bill, but if the conflict of interest clause was not included, I would not only oppose it, but would encourage other Democrats to oppose it as well."
Republicans hit back at Democrats, only wanting to discredit Trump
Andy Barr, a Republican from Kentucky, responded:
"You Democrats are simply playing politics, accusing Trump of using this bill to benefit yourself, with absolutely no evidence."
He stressed that Trump supports crypto regulation to help the industry, not to profit from it.
But Himes immediately hit back, criticizing the statement as "cheap and irresponsible" and emphasizing that Trump's overall "behavior" cast a shadow on the entire bill.
The hearing will be held again, with the Senate participating next Monday
Maxine Waters, a Democratic member of the Financial Services Committee, called for another Minority Day Hearing and an expanded hearing list to reassess the relationship between Trump and the bill. She also revealed that the committee may formally review the bill as early as next week.
As for the Senate, Republican Senator Cynthia Lummis revealed in an interview on June 4 that the Senate will formally participate in the discussion of the market structure bill starting next week, echoing the House version.
Risk Warning
Cryptocurrency investment carries a high degree of risk. Its price may fluctuate drastically and you may lose all your capital. Please assess the risk carefully.
Yonhap News Agency reported that Lee Jae-myung, the leader of the Democratic Party of Korea, was officially inaugurated as the 21st president of South Korea in the National Assembly this morning (June 4). This election was held after the former president Yoon Seok-yeol was impeached and martial law was imposed. The turnout rate in this election was as high as 79.4%, which is the highest in 28 years. The final vote rate was 49.42%, winning 17,287,513 votes. The new government's cryptocurrency policy in South Korea, a major cryptocurrency trading country, has also attracted special attention.
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ToggleA worker and lawyer by training, the new president was once involved in corruption cases
When former President Yoon Seok-yeol declared martial law, then opposition leader Lee Jae-myung live-streamed climbing over the wall into the National Assembly building to vote on the president's impeachment. After Yoon Seok-yeol was impeached, Lee Jae-myung, a lawyer by training, was also considered a strong contender for the next president. He worked in a factory as a teenager and later passed the bar exam. In his political career, he was well-received for his handling of the epidemic when he was the governor of Gyeonggi Province, but he was also involved in judicial disputes and suspected of corruption. He was also attacked in Busan in January last year.
South Korea's new president's son sexually harassed aespa member Karina
Another piece of gossip is that during the presidential candidate debate a few days ago, the Reform Party candidate Lee Joon-seok mentioned that Lee Jae-myung's son Lee Dong-ho was involved in illegal gambling and would verbally sexually harass female artists online. For example, he left a message on the photo of Karina, a member of the girl group aespa: I want to eat her. This incident also caused heated discussion.
What impact will the new South Korean government have on the crypto? Legalization of Bitcoin ETFs and raising the threshold for income tax laws
In terms of cryptocurrency policy, Lee Jae-myung once called for the legalization of Bitcoin ETFs. The Democratic Party to which he belongs has also made similar proposals, but no further implementation has been seen.
In the cryptocurrency tax law, the Democratic Party of Korea proposed to increase the cryptocurrency tax deduction to 50 million won. In the version of the income tax law amendment by Zheng Taihao, a member of the Democratic Party of Korea, the deduction amount was revised from less than 2.5 million won to less than 50 million won. In addition, the amendment also added a clause that if taxpayers find it difficult to confirm the actual cost price of cryptocurrency, a certain percentage of the transaction amount (up to 50%) can be used as a substitute. This means that half of the transaction income is tax-free.
When mentioning this proposal, we have to mention that the Democratic Party previously cooperated with the government to promote the abolition of financial investment income tax (referred to as financial investment tax). However, the Democratic Party's position of abolishing the financial investment tax but still accelerating the taxation of cryptocurrencies may arouse opposition from investors. However, the Democratic Party believes that expanding the deduction amount is actually equivalent to abolishing taxation, because investors with annual income exceeding 50 million won are a minority, and the taxation effect is minimal.
A Finance Committee official explained: "The deduction amount is set at 50 million won, and based on a 5% rate of return, the investment amount must be more than 1 billion won. In this way, most investors will no longer be included in the tax scope, and only a few large investors will be affected."
Risk Warning
Cryptocurrency investment carries a high degree of risk. Its price may fluctuate drastically and you may lose all your capital. Please assess the risk carefully.
