Singapore has emerged as a key player in the global digital assets space in 2024, overtaking Hong Kong in its efforts to attract cryptocurrency businesses.
According to Bloomberg, Singapore issued 13 new crypto licenses this year, signaling its growing appeal to major operators, including OKX, Upbit, Anchorage, BitGo, and GSR. This marked a sharp increase compared to the previous year, while Hong Kong’s regulatory progress has been comparatively slower.
Singapore strengthens Its position in the Crypto sector
Singapore’s proactive licensing and regulatory innovation approach has significantly boosted its digital asset industry. The Monetary Authority of Singapore (MAS) granted 13 licenses to various operators in 2024, more than double the number issued the prior year. This strategic push has attracted high-profile names in the industry, including global firms and exchanges seeking a reliable and business-friendly environment for their operations.
The city-state’s efforts are part of a broader strategy to establish itself as a global cryptocurrency and blockchain innovation hub. By offering clear regulatory guidelines and fostering a supportive ecosystem, Singapore has positioned itself as an attractive destination for crypto-related businesses looking for stability and growth opportunities.
Hong Kong struggles to keep pace
While Hong Kong has also been trying to attract crypto firms through its licensing program, its progress has lagged behind Singapore’s rapid advancements. To date, Hong Kong has issued seven full licenses and an additional seven provisional licenses, but its stricter rules on areas such as token policies and customer asset custody have reportedly slowed the process.
Angela Ang, a senior policy adviser at TRM Labs, noted that the regulatory differences may have contributed to Singapore’s success. Hong Kong’s rigorous approach has created challenges for some businesses, leading major exchanges like OKX and Bybit to withdraw their license applications in the city.
Competition for digital asset dominance
Both Singapore and Hong Kong view the digital assets industry as a critical component of their efforts to strengthen their roles as international financial centers. Each jurisdiction has rolled out initiatives to encourage the adoption of tokenization, blockchain innovation, and crypto technologies. However, Singapore’s ability to streamline its licensing process and foster a business-friendly environment has given it a competitive edge. As regulators in Hong Kong aim to approve more licenses by year-end, the city will need to address these challenges to remain competitive. Meanwhile, Singapore’s 2024 performance underscores its growing reputation as a leading hub for digital assets.