With increased regulatory pressure in Singapore, the global crypto ecosystem is transitioning to Dubai. Digital asset firms, which were previously heavily established in Southeast Asia, are now transitioning their business models to the UAE, sharing their endorsements of Dubai’s clean regulatory environment, flexible regulatory structure, and generally favorable tax terms.
On June 30, 2025, Singapore secondly implemented a strict requirement that all cryptocurrency businesses, including firms that deal only with overseas customers, must obtain full licensing from the Monetary Authority of Singapore (MAS). Singapore imposed this requirement without a grace period or any carve-outs for smaller players. Failure to comply could result in up to three years in prison, making the business environment too risky for many operators.
Dubai is offering a smoother path. The emirate has already attracted Binance, Bybit, OKX, Bitget, and Crypto.com, who’ve all established regional bases in the UAE. According to recent data, the country generated over $30 billion in cryptocurrency investment in 2024 alone. At TOKEN2049 Dubai, where over 15,000 delegates attended this year, the city’s commitment to innovation was everywhere.
From a business perspective, the crypto-tax policy in Dubai is unique. In Dubai, individuals are exempt from income tax on crypto and capital gains tax on crypto; this is a very compelling attraction for businesses, both startups and larger, more established firms.
Solaiman AlRifai, Board Member at MGX Fund, noted, “Dubai has sustainable innovation, not just innovation. The regulation is clear, the infrastructure is real, the incentive is unparalleled.”
There are numerous regulatory frameworks for crypto firms to choose from, and each firm can select a framework that best suits its needs. VARA (Virtual Assets Regulatory Authority), DIFC, ADGM, and IFZA are examples of regulatory frameworks that provide flexibility for organizations of different sizes and global footprints.
Industry leaders attribute the emergence of Dubai to investment in infrastructure. The first prominent infrastructure project is the Crypto Tower, a custom-designed building developed with the assistance of MGX Fund and Liv Bank, designed to become a focal point for blockchain development, innovation, and collaboration in the region.
Rami Alsridi, CEO of Mining Grid, said it best: “Dubai isn’t just ahead of the on-ground policy; it is building the spaces the future of crypto can thrive from.”
But it goes deeper than just business-friendly policies. Developments such as flexible federal policy, a broad range of free zones, and the fact that Dubai is partnered with several of the leading exchanges worldwide, where networks are now being built, create a unique ecosystem where crypto is actively welcomed and nurtured.
Even our partners beyond Dubai have noticed the build-out happening in the UAE. The UAE’s balancing act of creating a regulatory structure alongside monetary incentives to encourage investment and innovation is beginning to make the UAE one of the more adaptive crypto jurisdictions for the future of this space globally.
While Singapore focuses on maintaining financial stability through tight regulation, Dubai is positioning itself as a forward-thinking global cryptocurrency hub.
The question is no longer whether the capital of crypto is shifting. It’s how fast. With major platforms coming in, investing growing, and large-scale events (TOKEN2049) selecting Dubai, the trend is evident: the heart of digital finance is now drifting to the Gulf.
