Morning Update Asia: Is Singapore’s Regulatory Clampdown a Reaction to 3AC and Terraform Failures?

Ethereum Momentum Holds Despite Geopolitical Shock; Singapore Tightens Regulatory Screws on Offshore Crypto Players

A turbulent start to Asia’s trading day follows escalating conflict in the Middle East, with Israeli airstrikes on Iranian nuclear sites rattling global risk assets. Bitcoin (BTC) dropped to $103,162, while ether (ETH) fell sharply to $2,694, before partially recovering. Yet amid the panic, Ethereum continues to outperform over the longer time frame, pointing to growing institutional confidence in its ecosystem.

ETH has surged nearly 40% in the last three months, outperforming both bitcoin and the CoinDesk 20 Index. Analysts say this is less about macro risk and more about structural shifts in capital flow.

“ETH has increasingly become the gateway to altcoin exposure,” noted Charmaine Tam of Hex Trust. “Its ETF momentum and Layer 2 activity make it the launchpad for broader crypto rotation.”

On-chain data supports the view: inflows into Ethereum-based ETFs have exceeded $1.25 billion since mid-May, while ETH dominance continues to rise at the expense of BTC. This suggests that investors are willing to take on more risk, rotating into sectors like DeFi, AI-integrated chains, and Ethereum scaling solutions.

MAS Slams the Door on Offshore Crypto Loopholes

After months of signaling its intent, Singapore’s Monetary Authority (MAS) has formally ended the regulatory gray zone that allowed crypto firms with no real local footprint to operate under a Singapore address.

Effective June 30, digital token providers serving only foreign clients must hold a Singapore license. Exchanges including Bitget, Bybit, and WazirX are now exiting the market. The move follows the reputational fallout from Three Arrows Capital and Terraform Labs, which were registered in Singapore but operated primarily abroad.

“This is a clear message: use Singapore’s name, follow Singapore’s rules,” said a compliance officer at a local exchange.

By closing this loophole, MAS is reinforcing its stance as a proactive regulator unwilling to tolerate jurisdictional arbitrage.

QSafe: A Wallet Built for the Quantum Age

Quantum-resilient blockchain project Quranium has unveiled its QSafe Wallet, which incorporates next-generation cryptographic protocols designed to withstand quantum decryption. Built using SLHDSA and ML-KEM, two NIST-endorsed standards, QSafe supports Bitcoin, Ethereum-compatible chains, Solana, and Quranium’s own L1.

“You don’t wait for the breach to deploy security,” said Quranium CTO Priya Dhiman. “QSafe was built to anticipate tomorrow’s threat.”

As the quantum arms race accelerates, QSafe may emerge as the benchmark for digital asset security.

Market Recap (8:15 a.m. HKT)

Bitcoin (BTC): Down 4.7%, trading around $103.3K as geopolitical shock rattles sentiment.
Ethereum (ETH): Down 2.9% to $2,694, though ETF inflows remain resilient.
Gold: Surged 3.1% to $3,426.95 amid Middle East tensions and soft U.S. PPI data.
Nikkei 225: Fell 1.28% following Israel’s strike on Tehran.
S&P 500: Up 0.38%, lifted by Oracle’s strong earnings and tech optimism.