According to the latest report from Bloomberg, Singapore is rapidly rising and is expected to surpass Hong Kong by 2024, becoming the leader in Asia's digital asset space, particularly excelling in regulatory efficiency and attracting cryptocurrency companies.
This year, Singapore significantly increased the issuance of cryptocurrency licenses, reaching a total of 13, more than double that of last year. Well-known international platforms such as OKX, Upbit, Anchorage, BitGo, and GSR have obtained operational licenses, further proving Singapore's strong attractiveness to cryptocurrency firms.
In stark contrast, Hong Kong has made slow progress in issuing licenses, with only seven platforms obtaining formal licenses, while several others hold temporary licenses.
Differences in regulatory policies shape regional competitive landscape
Experts analyze that Hong Kong's insufficient competitiveness in the digital asset field is partly due to its relatively strict regulatory environment. Specifically, Hong Kong's regulations on client asset custody, token listing, and delisting policies are quite stringent, increasing the operational difficulties and costs for exchanges.
At the same time, the Hong Kong market is primarily limited to highly liquid cryptocurrencies like Bitcoin and Ethereum, with more restrictions on investments in other altcoins. This conservative regulatory attitude has led large exchanges like OKX and Bybit to withdraw their license applications in Hong Kong and turn their attention to the Singapore market.
In this regard, Angela Ang, a senior policy advisor at consulting firm TRM Labs, commented: 'Hong Kong's stricter regulations regarding client asset custody and token listing/delisting policies may give Singapore an advantage in the competition.'
Comparison of the innovation paths of cryptocurrencies in Singapore and Hong Kong
Singapore is praised for its balanced regulatory approach, which not only facilitates collaboration between startups and established financial institutions but also drives innovation in cryptocurrencies.
Bloomberg reports that projects supported by the Monetary Authority of Singapore, such as 'Project Guardian' and 'Global Layer 1', are accelerating the asset tokenization process and promoting the application of blockchain technology in wholesale financial markets. These efforts have made Singapore the preferred location for many companies to establish regional headquarters for digital asset businesses.
In contrast, although Hong Kong has made some progress in the digital asset space, such as issuing tokenized green bonds worth HK$6 billion and launching spot ETFs for Bitcoin and Ethereum, its overall adoption rate is slower. At the same time, the total assets managed by these ETFs in Hong Kong are only about $500 million, a stark contrast to the $120 billion market in the United States.
Experts analyze that Hong Kong's focus on traditional financial institutions has limited the growth space for innovative startups, thereby slowing the development of the digital asset industry. Roger Li, co-founder of One Satoshi, pointed out that meeting Hong Kong's standards and achieving profitability poses a significant barrier for startups.
Conclusion:
Amid the global wave of the digital asset industry, Singapore leads in Asia with its regulatory efficiency and attractiveness to cryptocurrency firms, creating a favorable digital asset ecosystem through proactive policies and support for innovation.
However, despite Hong Kong's strict regulations limiting its development speed, it still has the opportunity to attract businesses and investments through more flexible regulations, laying a stable foundation for the market.
The competition between the two regions is expected to drive innovation and improvement in digital asset regulation in Asia and even globally, promoting safety and stable development in the industry. Meanwhile, in the face of a rapidly changing market, Singapore and Hong Kong must continually adjust their strategies to jointly promote the prosperity of digital assets in Asia.