Singapore Leads Asia's Crypto Hub Race Over Hong Kong

Singapore outperformed Hong Kong in “regulatory efficiency and appeal” to crypto businesses in 2024, according to Bloomberg.

The city-state awarded 13 crypto licenses this year, more than twice the amount in 2023. OKX, Upbit, Anchorage, BitGo, and GSR received regulatory permission, underscoring Singapore's rising appeal to digital asset companies.

Hong Kong's licensing framework has made “slower progress” with just seven fully approved platforms and numerous more with interim authorization.

Hong Kong Accelerates Crypto Licensing: 4 New Exchanges Approved
Regulation Differences Make Region Competitive
Industry observers blame Hong Kong's regulatory limitations for its tardiness. They said the city's strict token listing, delisting, and custody restrictions make it hard for exchanges to make a profit.

TRM Labs senior policy advisor Angela Ang said:

Hong Kong's exchange regulations are stricter in areas like client asset custody and token listing and delisting. This may have favored Singapore.”

Different Crypto Innovation Strategies
Singapore's balanced regulatory system encourages new entrants and incumbent financial institutions to collaborate.

Project Guardian and Global Layer 1, supported by the Monetary Authority of Singapore, seek to speed asset tokenization and blockchain use in wholesale financial markets, Bloomberg said.

Singapore has become a solid regional headquarters for digital asset firms due to these initiatives.

Despite the sale of HK$6 billion ($770 million) in tokenized green bonds and the debut of Bitcoin and Ethereum spot ETFs, acceptance has been sluggish in Hong Kong.

These Hong Kong ETFs have $500 million in assets under management, compared to $120 billion in the US.

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