Singapore Outpaces Hong Kong in Digital Asset Licensing

As 2024 drew to a close, Singapore cemented its position as a leading digital assets hub in Asia by issuing 13 new crypto licenses, more than double the number granted in the previous year. This includes licenses for major global exchanges like OKX and Upbit, as well as renowned firms such as Anchorage, BitGo, and GSR. The city's proactive stance on crypto regulation is positioning it as a major player in the digital asset space.

The rapid expansion of Singapore's crypto licensing regime stands in stark contrast to the slower pace of regulatory developments in Hong Kong. While Hong Kong has issued just seven full licenses, with four granted in December, its licensing regime remains more restrictive, particularly in terms of custody policies and token listing rules.

Angela Ang, a senior policy adviser at consultancy TRM Labs, noted that Hong Kong's more stringent regulatory measures may have tipped the balance in favor of Singapore. "Hong Kong's regulatory regime for exchanges is more restrictive in a number of ways that matter – such as custody of customer assets and token listing and delisting policies," Ang said.

As of late December, Hong Kong had only granted licenses to seven exchanges, with some facing restrictions on the types of cryptocurrencies they can offer. In contrast, Singapore's open and supportive environment has proven to be an attractive option for digital asset firms, leading many to opt for the city-state over its rival.

David Rogers, Regional CEO at market maker B2C2, which has applied for a license in Singapore, explained that the city's regulatory clarity and support for digital assets make it a "safe, long-term choice" for firms looking to establish a regional hub. "It's a risk-adjusted approach we are taking here," Rogers added.