Is Hong Kong Falling Behind?

In 2024, Singapore has surged ahead in the race to become the top crypto hub in Asia. In just one year, Singapore has issued 13 crypto licenses to major platforms like OKX, Upbit, Anchorage, BitGo, and GSR, which is double the number of licenses granted in 2023. This rapid growth shows Singapore’s commitment to creating a strong digital asset industry.

Why Singapore is Winning the Crypto Race

A big reason for Singapore’s success is its flexible regulations. Unlike Hong Kong, which has strict policies on token listing and custody of customer assets, Singapore’s policies are more open and welcoming to new crypto businesses. 

This has allowed smaller crypto firms to flourish alongside established financial institutions, promoting innovation and growth.

Additionally, Singapore is more open to a wider variety of tokens, unlike Hong Kong, which only allows trading in Bitcoin and Ether. This openness makes Singapore even more attractive to crypto companies.

Hong Kong Struggles to Keep Up

On the other hand, Hong Kong has been slower in granting licenses. By the end of 2024, the city had licensed only 7 platforms in total, with 4 approvals coming as recently as December 18, 2024.

Some well-known exchanges like OKX and Bybit have even withdrawn their applications due to Hong Kong’s stricter regulations. This slower progress highlights the difficulties Hong Kong faces in competing with Singapore.

Another challenge for Hong Kong is its close ties to China, where crypto trading is banned. This connection makes some international crypto companies hesitant to set up in Hong Kong, fearing political risks creating a less welcoming environment for innovation.

Singapore’s Advantages

Both cities have made strides in blockchain technology. Singapore has launched important projects like Project Guardian and Global Layer 1, which focus on tokenizing assets and promoting blockchain use.

Meanwhile, Hong Kong has had success with digital green bonds and Bitcoin and Ether ETFs, but these products haven’t generated the excitement seen in the U.S. market.