Singapore has solidified its position as a leading digital-assets hub in 2024, eclipsing rival financial centre Hong Kong in its race to attract cryptocurrency firms. The city-state issued 13 crypto licences this year, more than double the number granted in 2023, welcoming prominent operators such as OKX, Upbit, Anchorage, BitGo, and GSR.
In contrast, Hong Kong’s progress has been slower, with a similar licensing regime struggling to gain momentum. The city has granted full licences to only seven platforms so far, four of which were approved with restrictions as recently as December 18. An additional seven exchanges hold provisional permits. High-profile firms like OKX and Bybit have withdrawn their applications for licences in Hong Kong, further tilting the balance in Singapore’s favour.
Both financial hubs are competing to attract digital-asset firms through initiatives such as regulatory sandboxes, tokenisation projects, and specialised frameworks. Authorities in both regions recognise the potential of cryptocurrencies to enhance their appeal as global business centres. However, differences in regulatory approaches appear to be shaping outcomes.
“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,” said Angela Ang, senior policy adviser at consultancy TRM Labs. “This may have tipped the balance in Singapore’s favour.”
Hong Kong’s cautious stance is evident in its trading policies, which limit activity to the most liquid cryptocurrencies, such as Bitcoin and Ether. This excludes smaller, more volatile tokens, commonly known as altcoins. Meanwhile, Singapore’s relatively supportive environment has attracted firms seeking long-term regional hubs.
David Rogers, regional chief executive at market maker B2C2 Ltd., noted the influence of China’s crypto trading ban on Hong Kong’s operations. “Hong Kong’s special administrative regime has a different risk profile compared to other countries,” said Rogers, whose company has applied for a licence in Singapore.
Both cities have made strides in blockchain adoption among regulated financial institutions. Singapore’s Monetary Authority announced state-backed initiatives like Project Guardian and Global Layer 1 in November to advance asset tokenisation. Hong Kong, for its part, oversaw the sale of HK$6 billion ($770 million) in digital green bonds via HSBC Holdings Plc’s platform and introduced spot Bitcoin and Ether ETFs earlier this year. However, these products have yet to generate significant traction, unlike their US counterparts.
As Singapore continues to position itself as a crypto-friendly jurisdiction, its streamlined regulatory processes and ambitious initiatives may further widen the gap between the two cities in their bid for digital-asset supremacy.
