Singapore Outpaces Hong Kong in Crypto Adoption Despite Uneven Regulatory Approach
Date: 2024-12-24 Author: Oliver Abernathy Categories: IN WORLD
Singapore issued 13 new crypto licenses in 2024, doubling the number from the previous year. These licenses were mostly granted to major crypto exchanges such as OKX and Upbit, as well as companies such as Anchorage, BitGo, and GSR. Meanwhile, Hong Kong continues to face delays in its licensing process, which is holding back its cryptocurrency development. Both cities are seeking to attract digital asset companies by offering special regulatory regimes, tokenization projects, and innovation sandboxes to test new technologies.
As Angela Ang, senior policy adviser at blockchain tracking firm TRM Labs, noted, regulation of cryptocurrency exchanges in Hong Kong is more restrictive in a number of key areas, such as custody of client assets and token listing and delisting policies. This, in her opinion, could tip the scales in Singapore’s favor.
Hong Kong, in turn, has issued licenses to only seven platforms, of which four were approved in December with certain restrictions. However, exchanges such as OKX and Bybit decided to withdraw their applications without explaining the reason for this move. Hong Kong has a cautious approach, allowing trading only in the most liquid cryptocurrencies, such as Bitcoin and Ethereum, while limiting trading to smaller, more volatile tokens.
In addition, the influence of China, where cryptocurrency trading is banned, limits Hong Kong’s ability to support the crypto industry. Hong Kong’s special relationship with China creates unique risks for the city, as noted by David Rogers, regional CEO of market maker B2C2. Unlike Hong Kong, Singapore offers a more supportive environment, making it a “safe long-term choice” for establishing a regional hub.
As such, Singapore continues to strengthen its position in the cryptocurrency business, providing a more attractive environment for companies than Hong Kong, which faces additional restrictions and political risks.
