According to ChainCatcher news and Bloomberg's report, in 2024, Singapore issued 13 cryptocurrency licenses to several cryptocurrency operators, including exchanges OKX and Upbit, as well as Anchorage, BitGo, and GSR, which is more than double the number from the previous year. In contrast, the issuance of similar licenses in Hong Kong is progressing slowly. Both cities are trying to attract digital asset companies by establishing dedicated systems, tokenization projects, and regulatory sandboxes. Local governments believe cryptocurrencies have the potential to enhance their attractiveness as global business hubs, but progress is not uniform.
Angela Ang, a senior policy advisor at the consulting firm TRM Labs, stated: "Hong Kong's regulatory framework for exchanges is stricter in many important aspects, such as client asset custody, token listing, and delisting policies. This could tilt the balance in favor of Singapore." The approval process in Hong Kong has been slower than expected, and regulators have indicated their intention to approve more exchanges by the end of the year. Currently, Hong Kong has fully authorized seven platforms to operate, four of which received approval on December 18 (with some restrictions). Additionally, seven others hold temporary licenses. Well-known exchanges like OKX and Bybit have withdrawn their applications for licenses in Hong Kong. Hong Kong only allows trading of the most liquid cryptocurrencies, such as Bitcoin and Ethereum, and prohibits investors from trading smaller, more volatile tokens (i.e., altcoins). Roger Li, co-founder of One Satoshi, a chain store providing over-the-counter exchange services between cash and cryptocurrencies, stated: "The requirements to meet profitability standards are quite high."
