06-07-2025
Dubai is becoming Crypto's new playground as Singapore tightens regulations
Dubai is fast emerging as a magnet for global cryptocurrency players as regulatory tightening in Singapore prompts a new wave of digital asset firms to relocate to more business-friendly jurisdictions.
A growing number of exchanges, including Bitget and Bybit, are actively exploring Dubai and Hong Kong as alternative hubs after Singapore introduced sweeping new restrictions on overseas crypto activity.
The Monetary Authority of Singapore (MAS) announced last month that all crypto service providers incorporated in the city-state and serving international clients must obtain a Digital-Token Service Provider licence by June 30, 2025. Those who fail to comply could face fines of up to SGD 250,000 (Dh734,500) and three years in prison. With no grace period or exemptions for smaller players, the directive has triggered what industry insiders are calling a "crypto exodus."
'This is effectively a moratorium on fresh licences, hence the migration,' said Vikram R Singh, CEO of blockchain consultancy Antier, which recently expanded its operations to IFZA (International Free Zone Authority) in Dubai. 'Singapore is tightening the screws, while Dubai is opening the door wider.'
The UAE's approach to digital assets offers a stark contrast. Over the past three years, the country has developed a comprehensive regulatory framework for cryptocurrencies, earning the confidence of global players seeking predictability, innovation, and favourable tax regimes. According to global compliance consultancy Sumsub, the UAE attracted crypto investments worth more than $30 billion in 2024 alone, marking a new regional high.
A major draw for both individual investors and companies is the UAE's tax structure. There is no income or capital gains tax on crypto profits for individuals, while corporate entities operating from free zones can reduce the newly introduced 9 per cent federal corporate tax to virtually zero if their revenues are generated outside the country. Moreover, unlike many jurisdictions where regulatory oversight is centralised, the UAE offers multiple regulatory options. While federal authorities oversee crypto activities on the mainland, independent frameworks are administered by free-zone regulators in Dubai, the Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), and IFZA.
'This multi-regulator environment allows founders to pick the oversight that best fits their business model,' Singh said, describing the UAE as 'possibly the most pragmatic and adaptive crypto jurisdiction in the world right now.'
Dubai's credentials as a crypto hub received a major boost in April when TOKEN2049, the world's largest crypto event, attracted nearly 15,000 delegates from more than 4,000 companies. The event showcased the emirate's growing influence in the blockchain and digital finance space, supported by strong public-private collaboration. Notably, local capital is also backing infrastructure to support the industry's growth. Emirates NBD's Liv digital bank and Abu Dhabi's MGX fund are jointly funding the development of a 30-storey 'Crypto Tower' in the Dubai Multi Commodities Centre (DMCC), which will house crypto startups, accelerators, and venture firms.
Dubai regulators are also taking steps to prepare the financial system for the next wave of digital transformation. The Dubai Financial Services Authority (DFSA) recently issued fresh guidance on tokenised securities and real-world assets, a move seen as paving the way for greater institutional adoption. Singh said Antier is already collaborating with UAE partners to launch marketplaces for tokenised assets, aligned with the country's digital economy strategy.
'Dubai's proactive stance perfectly matches our infrastructure for real-world asset tokenisation and digital asset trading,' Singh said. 'As tokenisation reshapes global finance, we intend to provide the bridge between traditional markets and Web3.'
Experts believe that Singapore's clampdown will only accelerate Dubai's ascent in the crypto ecosystem. Already home to major players like Binance, and OKX, Dubai continues to position itself as a global centre for blockchain innovation, digital finance, and tokenised markets.
What sets the emirate apart is its balance of regulatory clarity and entrepreneurial freedom. While ensuring robust compliance mechanisms, Dubai encourages experimentation and growth through regulatory sandboxes and innovation-friendly policies. The Virtual Assets Regulatory Authority (VARA), launched in 2022, has been central in creating a structured yet welcoming ecosystem for digital asset firms.
As more global crypto firms seek regulatory certainty and operational efficiency, Dubai's blend of infrastructure, investment climate, and strategic geographic location is proving to be an irresistible combination. With Singapore tightening its regulatory perimeter and other jurisdictions still catching up, Dubai appears poised to solidify its position as the world's next crypto capital.
