Singapore overtakes Hong Kong as regional digital asset leader in 2024
Singapore leads in crypto licensing race with 13 approvals in
Singapore has emerged as a leader in the race to attract digital-asset firms, issuing 13 crypto licenses in 2024, more than doubling last year’s total, according to a Bloomberg report.
Major industry players, including OKX, Upbit, Anchorage, BitGo, and GSR, were among those granted licenses, reports Cryptopolitan.
In contrast, Hong Kong’s progress has been slower, with only seven full licenses issued so far and another seven provisional approvals in place. Regulators in Hong Kong have faced delays as they work to finalize more approvals by year-end.
Singapore’s Competitive Edge in Crypto Regulation
Both Singapore and Hong Kong have positioned themselves as global crypto hubs, promoting regulatory sandboxes and frameworks to attract firms in digital finance and tokenization initiatives. However, experts suggest Singapore’s flexible approach has given it an edge.
Angela Ang, senior policy adviser at TRM Labs, said, “Hong Kong’s rules are stricter in areas like customer asset custody and token policies, which may have tilted the scale toward Singapore.”
These stricter rules have already caused major exchanges like OKX and Bybit to withdraw their Hong Kong license applications, opting instead for jurisdictions with more predictable regulatory environments.
Hong Kong Faces Challenges Despite Ambitions
While Hong Kong authorities remain committed to expanding their licensing program, progress has been slower than expected. The city introduced its new regulatory framework in June 2023 but has faced delays and compliance hurdles.
Officials have promised faster approvals in the coming months, hoping to keep pace with Singapore’s rapid expansion. However, the withdrawals by major exchanges highlight challenges that Hong Kong must address to remain competitive.
Recently we wrote, that Japanese investment firm Metaplanet, often referred to as “Asia’s MicroStrategy,” has made its largest Bitcoin purchase to date.
