According to Bloomberg's latest report, Singapore is rapidly rising and is expected to surpass Hong Kong by 2024, becoming the leader in the Asian digital asset field, particularly in terms of regulatory efficiency and attracting cryptocurrency companies.
This year, Singapore has significantly increased the issuance of cryptocurrency licenses, reaching a total of 13, more than double that of last year. Internationally renowned platforms like OKX, Upbit, Anchorage, BitGo, and GSR have all obtained operating licenses, further demonstrating Singapore's strong appeal to cryptocurrency companies.
In sharp contrast, Hong Kong has made slow progress in issuing licenses, with only seven platforms receiving formal licenses, while several others hold temporary licenses.
Differences in regulatory policies shape the regional competitive landscape
Experts point out that one of the reasons for Hong Kong's insufficient competitiveness in the digital asset field is its relatively strict regulatory environment. Specifically, Hong Kong's regulations regarding 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 major exchanges like OKX and Bybit to withdraw their license applications in Hong Kong and turn towards the Singapore market.
In this regard, Angela Ang, a senior policy advisor at consulting firm TRM Labs, commented: 'Hong Kong's stricter regulations on client asset custody and token listing/delisting policies may give Singapore a competitive advantage.'
Comparison of cryptocurrency innovation paths between Singapore and Hong Kong
Singapore is praised for its balanced regulatory strategy, which not only fosters cooperation between emerging startups and established financial institutions but also promotes innovation in cryptocurrency.
Bloomberg reports that projects supported by the Monetary Authority of Singapore, such as 'Project Guardian' and 'Global Layer 1', are accelerating the process of asset tokenization and promoting the application of blockchain technology in wholesale financial markets. These efforts have made Singapore the preferred location for many companies to establish their regional headquarters for digital asset businesses.
In contrast, while 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 relatively slow. Meanwhile, the total assets managed by these ETFs in Hong Kong are only about $500 million, a far cry from the $120 billion in the U.S. market.
Experts analyze that Hong Kong's emphasis on traditional financial institutions has limited the growth space for innovative startups, thereby slowing down 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 presents a high barrier for startups.
Conclusion:
In the wave of the global digital asset industry, Singapore leads in Asia with its regulatory efficiency and attractiveness to cryptocurrency companies. Active policies and support for innovation have created a favorable digital asset ecosystem.
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 across 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 still need to continuously adjust their strategies to jointly promote the prosperity of digital assets in Asia.