Singapore Regulatory Changes: Where Will the "Crypto World Jews" Move Next?

Recently, there has been explosive news in the encryption industry: Singapore has recently strengthened regulations on the Crypto Assets industry.

In simple terms, the core requirement of the new regulations is: starting from June 30, 2025, encryption service providers that have not obtained a Digital Token Service Provider (DTSP) license will not be allowed to provide services to overseas clients.

The coverage of this new regulation is very broad, encompassing token issuance, trading, custody, consulting, and even the publication of research reports. The capital threshold has been raised, and KYC/AML requirements have been upgraded, which forces many small and medium players and unlicensed entities to consider relocating.

Chinese in the Crypto Assets industry are very much like "Jews", constantly migrating after being forced to leave their homeland.

First from the mainland to Hong Kong, then from Hong Kong to Singapore, and now departing from Singapore again, searching for the next place to settle.

Everyone is speculating where the next step will be for the crypto assets community, and where exactly is the Jerusalem of the encryption world. This article will systematically analyze this.

1. Impact Assessment: How Many People Will the New Regulations Affect?

Let's start with an impact assessment.

Singapore has issued DTSP licenses to 33 companies, and some other companies have been operating in Singapore before the PSA (Payment License) took effect, specifically before January 28, 2020, and are temporarily exempt but must operate in compliance until their license application is approved or rejected.

So how many companies have not obtained a license yet?

According to the 2021 MAS data, MAS received 480 applications for payment service licenses (including DPT/DTSP related), of which 19% (about 91) were withdrawn or rejected. By 2025, only 33 companies obtained DTSP licenses, with an approval rate of less than 10%.

According to this application data, it can be seen that there are currently an estimated 200-300 crypto-related entities, among which unlicensed and unexempt companies may account for 60%-80% (approximately 120-240 companies).

Based on the fact that each project team has about 5 to 20 people, it is estimated that there are thousands of direct employees in the Crypto Assets industry, but it indirectly affects hundreds of thousands of users (market ecosystem).

For Singapore, a considerable proportion of talent and funds in the encryption industry will be lost.

2. Where will professionals in the Crypto Assets industry flow to?

Where will such a high density of talent and capital flow to? Where is the next destination for the crypto assets circle Jews?

There are various opinions from everyone, and here are several popular countries and regions that are mentioned frequently; we can make a horizontal comparison.

These countries and regions each have their own advantages and disadvantages, so which country is more attractive?

Actually, we still need to start from demand. We need to first know what the people in the coin circle want.

Overall, the Jewish community in the coin circle, as a profit-seeking and highly liquid group, will certainly prioritize regions with relaxed regulations, tax incentives, and well-developed infrastructure.

Then, we can extract the core factors and evaluate them in a relatively more quantitative manner.

This is mainly divided into 5 evaluation dimensions,

• Regulatory Environment (High Weight): A relaxed and clear regulatory framework is conducive to rapid implementation, while strict but mature regulations are suitable for long-term development.

• Taxes and Costs (High Weight): Low tax rates and low living/operating costs are crucial for the capital-sensitive Crypto Assets industry.

• Market Potential (Weight): Local and regional market size, Crypto Assets adoption rate, and degree of internationalization.

• Infrastructure and ecology (in weight): financial, technological, legal support, and international environment.

• Risks and Stability (in weighting): Geopolitical, regulatory uncertainty, and legal risks.

Each factor is scored from 1 to 5 (5 is the best), and sorted by the overall score:

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After scoring, we can draw the following conclusions:

(1) Dubai and Hong Kong are the preferred choices, suitable for quick low-tax establishment and deep cultivation of the Asian market.

(2) Japan and the United States are suitable for players with long-term compliance needs or global ambitions, but costs and complexities need to be weighed.

(3) Thailand and Malta are more suitable for small and medium-sized projects with limited budgets. Thailand needs to pay attention to SEC licensing requirements in the short term.

However, different projects still need to be selected based on their own business scale, market goals, and financial strength:

For large players, options include Dubai, Hong Kong, and the United States.

For small and medium-sized teams, they can choose Thailand, Malta (short-term), Hong Kong, and Japan (long-term).

3. Summary

Will this migration of the Jewish people in the coin circle give rise to a new "Crypto Jerusalem"? Where will the next Crypto Assets center be?

Currently, regions such as Dubai, Hong Kong, and Japan have initially formed a loose crypto assets economic circle, each with its own characteristics: Dubai has low taxes, Hong Kong is compliant, and Japan is mature. Through the connection of the blockchain world, it resembles more of a crypto federation.

This migration may be a turning point for the Crypto Assets industry from barbaric growth to mature governance.

We still need to understand that the real revolution is on the chain rather than in geography. The endpoint of migration is not a certain city, but the continuation of belief, the pursuit and exploration of the decentralized concept.

So, can we finally break free from the constraints of geography?