This regulatory crackdown follows notable failures in the crypto sector, including the bankruptcies of Three Arrows Capital and Terraform Labs in 2022.

Major digital-asset exchanges are contemplating a move to Dubai and Hong Kong in response to Singapore's stringent new regulations on overseas crypto activities.

The Monetary Authority of Singapore has mandated that crypto-service providers serving foreign clients must secure a Digital-Token Service Provider license by mid-2025 or face severe penalties, including hefty fines and potential imprisonment.

These stricter regulations are aimed at combating money laundering and restoring confidence in the market after several high-profile scandals.

Investors in the UAE enjoy significant tax advantages, including no income or capital-gains tax on crypto profits, while companies in free zones can drastically reduce their corporate tax.

The flexible regulatory environment in the UAE allows founders to select the regulatory body that best aligns with their business model, with distinct frameworks in Dubai and Abu Dhabi.

The Dubai Financial Services Authority has issued guidance on tokenized securities, which is fostering greater institutional adoption of digital assets.

Dubai's emergence as a crypto hub was underscored by the TOKEN2049 conference in April 2025, drawing 15,000 delegates from 4,000 companies.

Antier, a blockchain consultancy, is collaborating with UAE partners to develop tokenized-asset marketplaces that align with Dubai's digital-asset strategy, aiming to bridge traditional markets with Web3.

Vikram R Singh, CEO of Antier, described Singapore's regulations as a 'moratorium on fresh licenses,' which has led to a 'crypto exodus' to more favorable jurisdictions like the UAE.

Local initiatives in Dubai, such as a planned 30-storey 'Crypto Tower' backed by Emirates NBD's Liv digital bank and Abu Dhabi's MGX fund, further illustrate the region's commitment to becoming a leading crypto hub.

In contrast, the UAE has cultivated a comprehensive regulatory framework for digital assets over the past three years, attracting approximately $30 billion in crypto investments in 2024.