A latest Bloomberg report has revealed that in 2024, Singapore was in a position to solidify its place as a number one digital asset hub in Asia, surpassing Hong Kong in “regulatory effectivity and attraction” to crypto corporations.
Notably, the city-state issued 13 crypto licenses this yr, greater than double the quantity granted in 2023. Distinguished international gamers resembling 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” below its licensing regime, with solely seven absolutely licensed platforms and a number of other others holding provisional permits.
Regulatory Variations Form Regional Competitiveness
Amid this discrepancy, business specialists level to regulatory restrictions in Hong Kong as a major issue behind its lag. They talked about that town’s stringent guidelines round custody of buyer property, 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 distinguished exchanges resembling OKX and Bybit to withdraw their licensing purposes 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 quite a lot of ways in which matter — resembling custody of buyer property 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 Challenge Guardian and World Layer 1, backed by the Financial Authority of Singapore, goal to speed up asset tokenization and drive blockchain adoption throughout wholesale monetary markets.
These efforts have positioned Singapore as a long-term, steady alternative for corporations 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 property below administration for these ETFs in Hong Kong stand at round $500 million—considerably decrease than the $120 billion held by equal merchandise in the USA.
Consultants recommend that Hong Kong’s emphasis on established monetary establishments leaves restricted area for revolutionary startups, slowing the tempo of digital asset sector progress. Roger Li, co-founder of One Satoshi acknowledged: “It’s fairly a excessive customary to satisfy and be worthwhile.”
Featured picture created with DALL-E, Chart from TradingView
