Crypto Firms Migrate from Singapore to Dubai Amid Regulatory Overhaul and Faster Licensing

A growing number of cryptocurrency firms are relocating operations from Singapore to Dubai as regulatory changes reshape the digital assets landscape. Eastern Region Group, a consulting firm specializing in digital finance, reported a "noticeable increase in corporate relocations" driven by Singapore’s 2025 regulatory overhaul under the Monetary Authority of Singapore (MAS). The reforms require crypto firms operating internationally to secure full domestic licenses, regardless of whether they serve local users. This has created what the firm describes as a "regulatory bottleneck" for smaller and global-focused startups, prompting a shift to Dubai as a strategic alternative [1].

Dubai’s appeal lies in its combination of tax advantages, regulatory agility, and infrastructure support. The city offers multiple licensing options through entities like VARA (the world’s first virtual assets regulator), DIFC (a hub for fintech under English common law), and ADGM (a regulated digital finance zone). Licensing processes in Dubai typically take 4-6 weeks, with clearer terms and stronger regulator engagement compared to Singapore’s year-long, uncertain approval timelines [1]. Additionally, the UAE introduced the One Freezone Passport in July 2025, streamlining cross-sector operations by allowing companies to operate under a single license across Dubai’s 30+ free zones. This initiative eliminates bureaucratic fragmentation, enabling businesses to access incentives like 100% foreign ownership and tax exemptions without redundant paperwork [3].

The shift reflects broader economic reforms in the UAE, including the 2021 removal of foreign ownership caps and Dubai Resolution No. 11 (2025), which allows free zone entities to operate onshore. These changes align with global trends toward tax-friendly regimes and streamlined governance. For example, Louis Vuitton leveraged the One Freezone Passport to establish operations in multiple zones within five business days, demonstrating the initiative’s efficiency in reducing costs and accelerating market entry [3].

Singapore’s regulatory approach, while aimed at risk mitigation and investor protection, has created operational challenges for innovation-driven firms. Stricter licensing requirements and compliance frameworks, while necessary for risk management, have inadvertently slowed agile operations [1]. In contrast, Dubai’s emphasis on digital transformation—through e-governance platforms and advanced infrastructure—aligns with the needs of tech-driven enterprises. The UAE’s legal infrastructure improvements, including a new bankruptcy court, are also expected to strengthen sectors like crypto and private credit by attracting foreign firms [2].

Eastern Region Group’s analysis highlights Dubai’s role in challenging traditional financial hubs by combining regulatory flexibility with strategic infrastructure. The firm notes that Dubai’s geographic centrality between East and West, coupled with its cost-effective expansion incentives, positions it as a gateway for global enterprises. This shift underscores the Gulf’s growing influence in the digital economy, as firms seek jurisdictions that balance compliance with innovation.

For investors, the realignment of crypto operations to Dubai highlights the region’s potential to attract high-growth sectors. Key areas to watch include technology, logistics, and premium retail, where tailored incentives and streamlined governance can drive scalability. The UAE’s D33 strategy, which prioritizes sustainability and smart infrastructure, further enhances its appeal for eco-conscious businesses [3]. As global volatility persists, Dubai’s risk-mitigated location and regulatory agility make it a compelling destination for strategic relocations.

Eastern Region Group continues to monitor regulatory shifts in major financial centers, emphasizing Dubai’s emergence as a benchmark for globally scalable, legally sound, and economically viable crypto ventures. The firm’s expanded focus on Web3 strategy, licensing, and corporate structuring reflects the industry’s pivot toward jurisdictions offering clear rules and innovation-friendly frameworks.

Sources:

[1] https://www.financial-news.co.uk/eastern-region-group-crypto-firms-shift-from-singapore-to-dubai-amid-regulatory-changes/

[2] https://www.thenationalnews.com/business/economy/2025/07/25/bankruptcy-court-will-make-uae-more-attractive-to-foreign-firms/

[3] https://www.ainvest.com/news/dubai-freezone-passport-game-changer-global-business-relocation-gulf-investment-2507/

[4] https://ts2.tech/en/bitcoin-flirts-with-120k-altcoins-surge-regulators-strike-nft-mania-returns-crypto-roundup-july-23-24-2025/