(Singapore Bloomberg) The Monetary Authority of Singapore issued a total of 13 Major Payment Institution Licenses to cryptocurrency operators in 2024, outperforming Hong Kong, which is also aiming to build a cryptocurrency hub.
Bloomberg reported that the above data is double that of last year and also exceeds that of Hong Kong. This year, the major payment institution licenses obtained by the HKMA include cryptocurrency exchange OKX, South Korea's largest cryptocurrency exchange Upbit, cryptocurrency bank Anchorage, digital currency wallet and trading service platform BitGo, and cryptocurrency market maker GSR.
In comparison, the approval process for official licenses in Hong Kong is slower than expected. Local regulators indicated that they plan to approve more exchanges to settle in Hong Kong before the end of the year. Currently, Hong Kong has seven fully approved cryptocurrency platforms, four of which just received the green light on December 18, but still face some operational restrictions. Additionally, Hong Kong has issued seven temporary licenses.
It is worth mentioning that major cryptocurrencies like Bybit and OKX have withdrawn their applications to set up in Hong Kong.
A senior policy advisor at blockchain intelligence company TRMLabs told Bloomberg that Hong Kong's exchange regulatory system is more stringent in many key areas, such as client asset custody, token listing, and delisting policies, which makes the Singapore market more appealing.
Co-founder of Hong Kong's largest cryptocurrency over-the-counter trading desk (OneSatoshi), Roger Li, said: 'Meeting the approval standards while achieving corporate profitability is a high threshold.'
China's stance forces coin merchants to adjust risks and turn to Singapore.
China's ban on cryptocurrencies puts Hong Kong at risk, allowing Singapore to seize opportunities as Asian economies compete to become cryptocurrency hubs.
David Rogers, CEO of cryptocurrency market maker B2C2, said: 'Singapore's supportive attitude towards digital assets allows coin merchants to develop long-term and safely, and we decided to apply for a license in Singapore to adjust our risks.'
The Monetary Authority has introduced two plans in November to promote asset tokenization and commercialization.