Singapore’s position on crypto licensing has overtaken that of Hong Kong, where regulatory hurdles have slowed the city’s progress.
Singapore is signaling progress toward becoming a global crypto industry hub as the city-state granted 13 new crypto licenses in 2024, double the number issued last year, Bloomberg has learned.
The licenses mainly went to large exchanges like OKX and Upbit, as well as other companies like Anchorage, BitGo and GSR. At the same time, Hong Kong has faced delays in its catch-up efforts, with its licensing process moving slowly, the report noted, adding that both cities aim to attract digital asset businesses by offering special regulatory regimes, tokenization projects and innovations. -targeted sandboxes.
As noted by Angela Ang, senior policy advisor at forensics firm TRM Labs, the regulatory regime for Hong Kong’s stock exchanges “is more restrictive in several important respects – such as custody of client assets and listing policies and delisting of tokens”, further adding that this “may have tipped the scales in Singapore’s favor”.
Hong Kong has full licenses for seven platforms, four of which were approved in December with certain restrictions. However, exchanges like OKX and Bybit withdrew their applications without explaining the reason. Due to its cautious approach, Hong Kong allows trading only the most liquid cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), and restricts trading of smaller, more volatile tokens.
Bloomberg says another factor limiting Hong Kong’s ability to remain competitive in this area is the influence of China, where cryptocurrency trading is banned. Hong Kong’s special relationship with China gives it a different risk profile than other countries, says David Rogers, regional managing director at market maker B2C2. According to Rogers, Singapore’s favorable environment makes it a “safe, long-term choice” for a regional hub.
