Is Hong Kong Falling Behind?
Singapore is well ahead in the race to become Asia’s top cryptocurrency hub in 2024. In just one year, Singapore issued 13 cryptocurrency licenses to major platforms such as OKX, Upbit, Anchorage, BitGo and GSR, doubling the number of licenses awarded in 2023. This rapid growth demonstrates Singapore’s commitment to building a strong digital asset industry.
Why Singapore is winning the cryptocurrency race
A big reason is Singapore’s success It’s its flexible regulations. Unlike Hong Kong, which has strict policies on token listings and customer asset custody, Singapore’s policies are more open and welcome new crypto businesses.
This allows smaller cryptocurrency companies to thrive alongside established financial institutions, fostering innovation and growth.
Additionally, Singapore is more open to a wider range of coins, unlike Hong Kong, which only allows Bitcoin and Ethereum trading. This openness makes Singapore more attractive to cryptocurrency companies.
Hong Kong struggles to keep up
Hong Kong, on the other hand, is slower to issue licenses. As of the end of 2024, the city had received only seven platform permits in total, four of which were approved as of December 18, 2024.
Some well-known exchanges such as OKX and Bybit even withdrew their applications due to stricter regulations in Hong Kong. The slow progress underscores the difficulties Hong Kong faces in competing with Singapore.
Another challenge facing Hong Kong is its close relationship with China, which bans cryptocurrency trading. This connection has made some international cryptocurrency companies hesitant to set up operations in Hong Kong, fearing that political risks would create a less welcoming environment for innovation.
Singapore’s Advantages
Both cities have made great strides in blockchain technology. Singapore has launched important projects such as Project Guardian and Global Layer 1, which focus on tokenizing assets and promoting the use of blockchain.
At the same time, Hong Kong has achieved success in: Digital Green Bonds and Bitcoin and Ethereum ETFs, but these products did not generate excitement in the U.S. market.
