Singapore has zoomed ahead of Hong Kong as Asia’s top crypto hub. This isn’t just an opinion; it’s backed by numbers.
Singapore’s Winning Strategy: More Licenses, More Players
In 2024, Singapore issued a whopping 13 crypto licenses – more than double the number from the previous year. Big names like OKX, Upbit, Anchorage, BitGo, and GSR all got the green light, showing Singapore’s appeal to major players.
Hong Kong’s Hurdles: Strict Rules Slow Down Growth
Hong Kong, on the other hand, is moving at a slower pace. They’ve only fully licensed seven platforms, with several others still waiting. Why the difference? Experts say Hong Kong’s strict rules are a major factor. Regulations around holding customer assets, listing and delisting tokens are making it tough for crypto businesses to turn a profit. They’re also limiting trading to just a few top cryptocurrencies like Bitcoin and Ethereum, leaving out many other investment opportunities. This has even pushed some big players, like OKX and Bybit, to pull their applications and head to Singapore instead. As Angela Ang from TRM Labs puts it, Hong Kong’s rules are just too restrictive.
Different Approaches, Different Results
Singapore’s approach is different. They’re focusing on a balanced system that welcomes both new and established companies. Initiatives like Project Guardian and Global Layer 1 are pushing asset tokenization and blockchain use in the financial world. This makes Singapore a more stable, long-term option for crypto companies.
Hong Kong has had some successes, like selling tokenized green bonds and launching Bitcoin and Ethereum ETFs. But the growth is much slower. The total assets in these Hong Kong ETFs are tiny compared to the US. Experts believe Hong Kong’s focus on established firms leaves less room for innovative startups, hindering overall growth. As Roger Li from One Satoshi points out, meeting Hong Kong’s standards and making money is a huge challenge.
In short, Singapore’s more flexible and welcoming approach is winning the race for Asia’s crypto crown.
