- Singapore will grant 13 new crypto licenses in 2024, twice the number from the previous year, underscoring the development of digital currencies.
- Crypto ambitions are at risk due to Hong Kong’s slow and rigid licensing process and regulations, while Singapore is stepping up.
- A clear regulatory framework of cryptocurrencies in Singapore as well as a more stable enviroment is preferable for companies as opposed to Hong Kong’s rather ambiguous regulatory landscape.
Singapore is already well on its way to becoming a global leader in dealing with cryptocurrencies. The city-state approved 13 new crypto licenses in 2024, up from five last year. Most of the licenses were issued to big exchanges like OKX and Upbit as well as other companies including Anchorage, BitGo and GSR. This rapid expansion is an indication of Singapore’s increasing attractiveness as a place to do digital asset business.
On the other hand, Hong Kong still has problems in its attempt to play catch up. Licensing in the region has been a slow process, with many of the exchanges complaining about the delays. Although Singapore has continued to develop its regulatory measures, Hong Kong seems to have regressed. Both the cities have created specific standards to accommodate crypto companies where they have provided tokenization projects and innovation tested environments known as sandboxes. However, the speed of Hong Kong has led to the concerns of its sustainability of its competitiveness.
Restrictions Impact Crypto Growth
According to Angela Ang, senior policy adviser at TRM Labs, a blockchain firm, it could be because of Hong Kong’s comparatively tighter regulations. As such, the guest noted that stringent measures that exist in Hong Kong regarding the custody of customer assets as well as token listing and delisting has put a lot of pressure on exchanges to operate optimally. This has made platforms like OKX and Bybit to decline their license applications without giving any reason.
So far, Hong Kong has issued full licenses to seven platforms; among them, four were given in December but with some limitations. These include only the most liquid assets like Bitcoins and Ethereums, and others are prohibited from trading.
Some of the tokens are prohibited from trading due to their smaller size and higher volatility, including both traders and exchanges. This has made Hong Kong to be less friendly to some crypto firms who were in search of certain degree of flexibility.
Singapore Outpaces Hong Kong
Another problem for Hong Kong is the fact that China has outlawed cryptocurrency trading, which causes a conflict of interest. This relation makes Moreno the only city with this particular risk profile compared to other regions of the country. David Rogers of market maker B2C2 said that Singapore is more attractive for crypto companies looking for sustainable development due to favorable regulation and a stable financial system.
While Hong Kong is still facing problems with the regulation of the crypto space, Singapore has taken the initiative and became the leader in the Asian crypto race. Singapore’s clear rules and strong financial framework remains an enticing proposition for companies wishing to enter the dynamic and developing digital asset market.
