A recent Bloomberg report revealed that by 2024, Singapore was able to strengthen its position as the leading digital asset hub in Asia, surpassing Hong Kong in “effective regulation and appeal” for crypto firms.
In particular, the city has issued 13 crypto licenses this year, more than double the number issued in 2023. Prominent global players such as OKX, Upbit, Anchorage, BitGo, and GSR have received regulatory approval, highlighting Singapore’s growing attractiveness for digital asset operators.
In contrast, Hong Kong has experienced “slow progress” under its licensing regime, with only seven platforms holding full licenses and a few others holding temporary permits.
Regulatory Differences Shape Regional Competition
Amidst this disagreement, industry experts point to Hong Kong’s regulatory restrictions as a major reason for its delay. They state that the city’s strict regulations regarding customer custody, token listing, and delisting policies have made it challenging for the exchange to operate profitably.
Additionally, trading is limited to high-liquidity cryptocurrencies such as Bitcoin and Ethereum, limiting altcoin investment opportunities. This cautious approach has led prominent exchanges such as OKX and Bybit to withdraw their applications for licenses in Hong Kong, redirecting their focus towards Singapore.
Angela Ang, senior policy advisor at consultancy TRM Labs commented:
“Hong Kong’s regulatory regime for exchanges is restrictive in many important ways – such as customer custody and token listing and delisting policies. This may tip the balance in favor of Singapore.”
Divergent Approaches to Crypto Innovation
Singapore’s regulatory framework has been praised for its balanced approach, encouraging cooperation between new entrants and established financial institutions.
Bloomberg pointed out that initiatives such as Project Guardian and Global Layer 1, supported by the Monetary Authority of Singapore, aim to accelerate asset tokenization and drive blockchain adoption across major financial markets.
These efforts have positioned Singapore as a long-term, stable choice for companies seeking regional headquarters for their digital asset operations.
In contrast, while Hong Kong has also achieved milestones, such as the sale of HK$6 billion ($770 million) in tokenized green bonds and the launch of Bitcoin and Ethereum spot exchange-traded funds (ETFs), adoption has been slow slowly.
The combined assets under management of these ETFs in Hong Kong stand at about $500 million—much lower than the $120 billion managed by similar products in the United States.
Experts suggest that Hong Kong’s emphasis on established financial institutions leaves limited space for new startups, slowing the growth of the digital assets sector. Roger Li, founder of One Satoshi said: “It’s a very high standard to meet and be profitable.”
The featured image was created with DALL-E, a Chart from TradingView
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