Singapore Digital Assets Hub Leads 2024 While Hong Kong Falters

Key Points:

• In 2024, Singapore issued 13 crypto licenses, more than double last year’s total, attracting major exchanges like OKX and Upbit.
• Hong Kong has only fully licensed 7 platforms, with high-profile exchanges like OKX and Bybit withdrawing their applications due to restrictive regulations.

Singapore has solidified its position as a leader in the Singapore digital assets industry in 2024, granting 13 crypto licenses to prominent operators such as OKX, Upbit, Anchorage, BitGo, and GSR.

Hong Kong Faces Challenges in Crypto Regulations

According to Bloomberg, Hong Kong’s similar licensing regime has struggled to gain momentum. So far, only seven platforms have been fully licensed, with another seven holding provisional permits. High-profile exchanges like OKX and Bybit have even withdrawn their applications for Hong Kong licenses, citing the city’s restrictive policies, which limit trading to primary tokens like Bitcoin and Ether.

Angela Ang, a senior policy adviser at TRM Labs, highlighted the differences between the two jurisdictions. “Hong Kong’s stricter regulations, particularly on asset custody and token listings, may have tipped the balance in Singapore’s favour,” she said.

Read more: BitGo Singapore Launched to Drive Potential in APAC Region Market

Innovative Projects Drive Singapore’s Crypto Success

Singapore’s regulatory environment has been described as a “safe, long-term choice” by executives like David Rogers of B2C2 Ltd, who praised its risk-adjusted approach. The Monetary Authority of Singapore continues to push innovation through projects like Project Guardian, which supports asset tokenization and bolsters the Singapore digital assets market.

Meanwhile, Hong Kong’s digital green bond initiative and Bitcoin and Ether ETFs have yet to generate significant traction. Combined, these ETFs have amassed only $500 million, far below the $20 billion of similar products in the US. “Singapore’s framework fosters collaboration between new and established players,” said Ben Charoenwong of INSEAD, emphasizing how it drives growth in Singapore digital assets. As both cities vie for dominance, Singapore’s balanced and inclusive approach strengthens its reputation as a global hub for Singapore digital assets innovation.