Singapore and Hong Kong have tried to attract crypto businesses this year; however, Singapore has led by approving 13 crypto licenses.
According to a Bloomberg report, Singapore onboarded top crypto firms, including OKX, Upbit, and Anchorage, to its shores in 2024. The crypto license approval this year is more than double the licenses awarded last year, it added.
However, the report added that Hong Kong has been more cautious in issuing licenses to crypto firms. As a result, Hong Kong has struggled to gain traction in the race to become a crypto hub.
Further, Hong Kong authorities have been slower in handing out permits this year than expected. The nation currently has seven fully licensed crypto platforms, of which five were offered licenses this year.
Meanwhile, major exchanges like OKX and Bybit have withdrawn their applications for Hong Kong licenses recently.
Bloomberg’s findings align with an analysis by blockchain intelligence firm TRM Labs issued on Dec 12. Per TRM Labs, Singapore has more mature regulation this year due to the global nature of the crypto ecosystem.
Angela Ang, senior policy adviser at TRM Labs, noted that Hong Kong’s regulatory regime for exchanges is more restrictive. The authorities have been more cautious regarding custody of customer assets and token listing and delisting policies.
Furthermore, the city only allows trading in more liquid assets like Bitcoin and Ethereum, restricting investors from trading other tokens.
David Rogers, regional chief executive at market maker B2C2 Ltd, noted that China’s ban on crypto trading had shifted traders’ focus to other jurisdictions like Hong Kong. The company has applied for a license in Singapore.
Additionally, it is a “safe, long-term choice” for crypto businesses to choose Singapore due to its crypto-friendly atmosphere.
“It is a risk-adjusted approach we’re taking here,” Rogers added.
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