The global cryptocurrency regulatory landscape is undergoing a significant transformation, leading to the decline of offshore havens and the rise of regulated jurisdictions, as exemplified by the Monetary Authority of Singapore's (MAS) June 2, 2025 announcement requiring Singapore-incorporated firms serving offshore crypto clients to obtain licenses or cease operations by June 30, 2025. This regulatory tightening is part of a global trend where previously hostile regulatory climates are increasingly giving way to comprehensive legal frameworks, such as in the United Arab Emirates, where the crypto sector is being embraced at the government level in an open effort to attract world-class projects and talent.
Regulated environments offer numerous advantages that offshore havens can no longer match, including transparent and consistent regulations, enhanced investor confidence, access to financial infrastructure, and business continuity. Exchanges like KuCoin, eToro, Bitfinex, and Robinhood increasingly prioritize operating in regulated jurisdictions, particularly in the UAE, Singapore, EU, US, and Switzerland, balancing compliance with user demand and innovation. The United Arab Emirates stands out with its rapid licensing procedures, alignment of public and private interests, and neutral stance towards digital assets, attracting top crypto and Web3 firms looking for both compliance and long-term growth.
While the shift towards regulated jurisdictions is clear, offshore locations continue to play a role for early-stage or experimental projects, especially in decentralized finance (DeFi), which by nature resists traditional regulatory models. Regulatory arbitrage remains a strategic consideration, with some projects deliberately selecting jurisdictions with lower compliance burdens to reduce costs and maintain agility during early development stages, though these advantages may prove temporary as global regulatory standards continue to evolve in a clear direction.
Source:
Ledger Insights
Irina Heaver
Franck F.
