According to ChainCatcher and Bloomberg, in 2024, Singapore issued 13 cryptocurrency licenses to several operators, including crypto exchanges OKX and Upbit, as well as Anchorage, BitGo, and GSR, more than double the number issued the previous year. In contrast, the issuance of similar licenses in Hong Kong is progressing slowly. Both cities are attracting digital asset companies by establishing dedicated systems, tokenization projects, and regulatory sandboxes. Local governments believe cryptocurrencies have the potential to enhance their appeal as global business hubs, but progress is uneven.
Consulting firm TRM Labs' senior policy advisor Angela Ang stated: "Hong Kong's regulatory regime for exchanges is stricter in many important aspects, such as client asset custody, token listing, and delisting policies. This may tilt the balance towards Singapore." Hong Kong's approval process is 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 were approved on December 18 (with some restrictions). Additionally, seven others hold temporary licenses. Well-known exchanges like OKX and Bybit have withdrawn their license applications in Hong Kong. Hong Kong only allows trading of the most liquid cryptocurrencies, such as Bitcoin and Ethereum, prohibiting investors from trading smaller, more volatile tokens (i.e., altcoins). Roger Li, co-founder of One Satoshi, a chain providing over-the-counter exchange services between cash and cryptocurrencies, stated: "The standards for reaching profitability are quite high."
