In 2024, Singapore took significant strides to establish itself as a leader in digital asset regulation. The city-state issued 13 crypto licenses to various operators, including well-known names like OKX and Upbit, as well as global firms like Anchorage, BitGo, and GSR. This marked a considerable increase from the previous year, demonstrating Singapore’s commitment to attracting crypto businesses. At the same time, Hong Kong has been struggling to keep up in the race, with its similar licensing program moving at a slower pace.
Both Singapore and Hong Kong are vying to draw in digital asset firms by providing supportive frameworks, tokenization initiatives, and regulatory sandboxes. Both cities see crypto as a way to enhance their positions as global business hubs, but there have been disparities in their progress. According to Angela Ang, a senior policy adviser at TRM Labs, Hong Kong’s stricter rules in areas such as customer asset custody and token policies may have favored Singapore in the competition to attract crypto businesses.
Hong Kong’s licensing process has faced challenges, leading to delays in approving more exchanges. While the city has fully licensed seven platforms and granted restrictions to four more on December 18, another seven hold provisional crypto licenses. Interestingly, major exchanges like OKX and Bybit have withdrawn their applications for Hong Kong licenses, indicating potential frustrations with the regulatory environment in the city. This could give Singapore an edge in attracting crypto firms looking for a more favorable regulatory landscape.
Singapore’s proactive approach to digital asset regulation has paid off, with the city-state issuing more than double the number of crypto licenses compared to the previous year. This growth showcases Singapore’s efforts to establish itself as a leading destination for crypto businesses, with major players like OKX and Upbit choosing to operate in the city. Meanwhile, Hong Kong’s slower licensing process and stricter regulations have hindered its ability to compete effectively with Singapore in attracting digital asset firms.
As the competition between Singapore and Hong Kong intensifies, it will be crucial for both cities to review their regulatory frameworks and streamline their licensing processes to attract more crypto businesses. While Singapore has made significant progress in this regard, Hong Kong will need to address its challenges to remain competitive in the race. Ultimately, both cities have the potential to become key players in the global digital asset market, but they will need to address their respective strengths and weaknesses to capitalize on this growing industry.
