Global exchanges plan relocation as UAE and Hong Kong offer regulatory relief
Major crypto exchanges are considering relocation to Dubai and Hong Kong following Singapore’s strict new rules on overseas crypto operations. Flexible regulation and tax incentives in the UAE make it a top destination for the booming digital asset industry.
Major digital asset exchanges are preparing to relocate operations to Dubai and Hong Kong as Singapore implements sweeping restrictions on overseas cryptocurrency activity, according to a senior executive based in the UAE’s International Free Zone Authority (IFZA).
Last month, Singapore’s Monetary Authority announced that any crypto service provider incorporated in the city-state and serving foreign clients must obtain a Digital-Token Service Provider licence by June 30, 2025. Firms that fail to comply risk facing severe penalties, including fines of up to SGD 250,000 (Dhs 734,500) and up to three years in prison. The new regulations leave no room for exemptions, even for smaller operators.
“This is effectively a moratorium on fresh licences, hence the migration — or crypto exodus,” explained Vikram R Singh, founder and chief executive of blockchain consultancy Antier, which has recently expanded its operations in IFZA Dubai.
While Singapore, once considered a crypto-friendly hub, moves to tighten oversight, industry leaders note that the UAE has spent the past three years laying the groundwork for a comprehensive regulatory environment for digital assets. The result is a jurisdiction that many now view as an attractive alternative.
According to consultancy firm Sumsub, the UAE attracted a record-breaking $30 billion in crypto investment during 2024, cementing its status as the region’s leading destination for digital finance ventures.
The country’s favourable tax policies have also been a significant draw for investors. Individual investors in the UAE are not subject to income or capital gains tax on crypto-related profits. Furthermore, companies operating within designated free zones can often reduce the new 9% federal corporate tax to near zero, provided the majority of their business is conducted outside the Emirates.
The UAE’s regulatory structure is designed with flexibility in mind. Federal authorities oversee mainland crypto activity, while individual free zones — including Dubai’s IFZA, the Dubai International Financial Centre (DIFC), and the Abu Dhabi Global Market (ADGM) — maintain their own digital asset frameworks.
This model allows crypto founders and companies to “pick the regulator that fits the business model,” Singh added, highlighting the country’s appeal for firms navigating an increasingly complex global regulatory landscape.
As regulatory uncertainty pushes major exchanges to reconsider their global operations, both Dubai and Hong Kong appear poised to capitalise, offering digital asset firms a path forward amid mounting restrictions elsewhere.
