A current Bloomberg report has revealed that in 2024, Singapore was capable of solidify its place as a number one digital asset hub in Asia, surpassing Hong Kong in “regulatory effectivity and enchantment” to crypto companies.
Significantly, the city-state issued 13 crypto licenses this yr, greater than double the quantity granted in 2023. Distinguished international gamers corresponding to OKX, Upbit, Anchorage, BitGo, and GSR secured regulatory approval, highlighting Singapore’s rising attractiveness for digital asset operators.
In distinction, Hong Kong has confronted “slower progress” beneath its licensing regime, with solely seven totally licensed platforms and several other others holding provisional permits.
Regulatory Variations Form Regional Competitiveness
Amid this discrepancy, business specialists level to regulatory restrictions in Hong Kong as a big issue behind its lag. They talked about that town’s stringent guidelines round custody of buyer belongings, token itemizing, and delisting insurance policies have made it difficult for exchanges to function profitably.
Moreover, buying and selling is restricted to high-liquidity cryptocurrencies like Bitcoin and Ethereum, limiting alternatives for altcoin investments. This cautious strategy has led outstanding exchanges corresponding to OKX and Bybit to withdraw their licensing functions in Hong Kong, redirecting their focus towards Singapore.
Angela Ang, senior coverage adviser at consultancy TRM Labs famous:
“Hong Kong’s regulatory regime for exchanges is extra restrictive in plenty of ways in which matter — corresponding to custody of buyer belongings and token itemizing and delisting insurance policies. This will have tipped the steadiness in Singapore’s favor.”
Diverging Approaches to Crypto Innovation
Singapore’s regulatory framework has been praised for its balanced strategy, selling collaboration between new entrants and established monetary establishments.
Bloomberg identified that initiatives like Venture Guardian and World Layer 1, backed by the Financial Authority of Singapore, intention to speed up asset tokenization and drive blockchain adoption throughout wholesale monetary markets.
These efforts have positioned Singapore as a long-term, secure alternative for firms looking for a regional headquarters for his or her digital asset operations.
In distinction, whereas Hong Kong has additionally achieved milestones, such because the sale of HK$6 billion ($770 million) in tokenized inexperienced bonds and the launch of Bitcoin and Ethereum spot exchange-traded funds (ETFs), adoption has been slower.
The mixed belongings beneath administration for these ETFs in Hong Kong stand at round $500 million—considerably decrease than the $120 billion held by equal merchandise in the US.
Consultants recommend that Hong Kong’s emphasis on established monetary establishments leaves restricted area for modern startups, slowing the tempo of digital asset sector progress. Roger Li, co-founder of One Satoshi acknowledged: “It’s fairly a excessive normal to satisfy and be worthwhile.”
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