Singapore Takes the
Lead Over
Hong Kong in Asia s Crypto
Hub Race –
Here s Why
Singapore Takes the Lead Over Hong Kong in Asia s Crypto Hub Race –
Here s Why
by Samuel Edyme
1 hour ago
in Crypto News
0
A recent Bloomberg• Объект бренды » Бренды на b » Bloomberg report has revealed that in 2024, Singapore was able to
solidify its position as a leading digital asset hub in Asia, surpassing Hong
Kong in regulatory efficiency and appeal to crypto firms.
Particularly, the city-state issued 13 crypto licenses this year, more than
double the number granted in 2023. Prominent global players such as OKX,
Upbit, Anchorage, BitGo, and GSR secured regulatory approval , highlighting
Singapore s growing attractiveness for digital asset operators.
In contrast, Hong Kong has faced slower progress under its
licensing regime, with only seven fully licensed platforms and several others
holding provisional permits.
Related Reading: Hong Kong Speeds Up Crypto Licensing: 4 New Exchanges Get the
Green Light
Regulatory Differences Shape Regional Competitiveness
Amid this discrepancy, industry experts point to regulatory restrictions in
Hong Kong as a significant factor behind its lag. They mentioned that the
city s stringent rules around custody of customer assets, token listing,
and delisting policies have made it challenging for exchanges to operate
profitably.
Additionally, trading is restricted to high-liquidity cryptocurrencies• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта like
Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin and Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum, limiting opportunities for altcoin investments. This
cautious approach has led prominent exchanges such as OKX and Bybit to
withdraw their licensing applications in Hong Kong, redirecting their focus
toward Singapore.
Angela Ang, senior policy adviser at consultancy TRM Labs noted:
Hong Kong’s regulatory regime for exchanges is more restrictive in a
number of ways that matter — such as custody of customer assets and token
listing and delisting policies. This may have tipped the balance in
Singapore’s favor. The global digital currency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта market cap value on the
1-day chart. Source: TradingView.com
Diverging Approaches to Crypto Innovation
Singapore s regulatory framework has been praised for its balanced
approach, promoting collaboration between new entrants and established
financial institutions .
Bloomberg• Объект бренды » Бренды на b » Bloomberg pointed out that initiatives like Project Guardian and Global Layer
1, backed by the Monetary Authority of Singapore, aim to accelerate asset
tokenization and drive blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн adoption across wholesale financial markets.
These efforts have positioned Singapore as a long-term, stable choice for
companies seeking a regional headquarters for their digital asset operations.
In contrast, while Hong Kong has also achieved milestones, such as the sale of
HK$6 billion ($770 million) in tokenized green bonds and the launch of Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin
and Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum spot exchange-traded funds (ETFs) , adoption has been slower.
Hong Kong crypto ETFs performance. | Source: Bloomberg• Объект бренды » Бренды на b » Bloomberg
The combined assets under management for these ETFs in Hong Kong stand at
around $500 million—significantly lower than the $120 billion held by
equivalent products in the United States• Соединённые Штаты Америки (США).
Experts suggest that Hong Kong s emphasis on established financial
institutions leaves limited space for innovative startups, slowing the pace of
digital asset sector growth. Roger Li, co-founder of One Satoshi stated:
It’s quite a high standard to meet and be profitable.
Featured image created with DALL-E, Chart from TradingView