- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Directive affects unlicensed overseas operations.
- A major shift for crypto exchanges Bitget and Bybit.
Bitget and Bybit plan staff relocations to Dubai and Hong Kong following a directive from the Monetary Authority of Singapore to cease unlicensed overseas operations by June 30, 2025.
This regulatory shift is pivotal, potentially reshaping the operational landscape of major cryptocurrency exchanges globally, with staff relocation to more crypto-friendly jurisdictions.
The MAS last week ordered all digital token service providers without a formal license under the Payment Services Act to cease overseas activities. The directive leaves little room for negotiation and applies even to firms awaiting full approval: MAS Directive
The regulatory action mandates that exchanges like Bitget and Bybit must exit or close non-compliant operations. This decision disrupts operations, leading to significant movements of employees and functionalities to crypto-supportive hubs, maintaining crypto exchange activity.
Exchanges now face substantial relocation challenges, impacting local employees and market dynamics. Additionally, with staff moving abroad, concerns about job losses and local economic impact are heightened. These regulatory shifts could ripple through the global crypto markets.
The financial climate will experience changes as significant cryptocurrency operations relocate. This could result in reduced on-chain activity in affected regions while boosting these operations in new host sites. Past occurrences in China and South Korea show exchanges typically rebound in new settings.
While monetary impacts remain unquantified, historical data indicates temporary turbulence followed by stabilization. These moves often result in renewed trading activities in pro-crypto jurisdictions, aiding overall market ecosystem stability eventually. Strategic relocations might influence local markets positively. Arthur Cheong, Founder of DeFiance Capital, noted, “Regulatory shifts are going to impact hundreds of jobs.”
