Hong Kong Falls Behind Singapore as Digital Assets Hub Takes the Lead in 2024

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Singapore issued 13 crypto licenses in 2024, which is more than double the number of licenses issued the previous year. This attracts significant exchanges such as OKX and Upbit.

Bloomberg has reported that Hong Kong’s licensing regime, which is comparable, has encountered difficulty in gaining momentum. Currently, only seven platforms have been granted full licensing, while an additional seven are operating under provisional permits. Even prominent exchanges such as OKX and Bybit have withdrawn their applications for Hong Kong licenses, citing the city’s restrictive policies that restrict trading to principal tokens such as Bitcoin and Ether.

Angela Ang, a senior policy adviser at TRM Labs, emphasised the differentiations between the two jurisdictions. “The balance may have shifted in Singapore’s favour due to Hong Kong’s stricter regulations, primarily on token listings and asset custody,” she stated.

Executives such as David Rogers of B2C2 Ltd have characterised Singapore’s regulatory environment as a “secure, long-term choice” and have commended its risk-adjusted approach. The Monetary Authority of Singapore is committed to fostering innovation by implementing initiatives such as Project Guardian, which promote asset tokenisation and strengthen the digital assets market in Singapore.

In the interim, the digital green bond initiative in Hong Kong and the Bitcoin and Ether ETFs have not yet achieved substantial momentum. In the United States, the combined value of these exchange-traded funds (ETFs) is only $500 million, which is significantly less than the $20 billion that similar products have realised. Ben Charoenwong of INSEAD emphasised that Singapore’s framework promotes collaboration between established and new actors, which is a key factor in the development of Singapore’s digital assets. As both cities compete for supremacy, Singapore’s balanced and inclusive approach fortifies its status as a global epicentre for Singapore digital asset innovation.

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