As a researcher with extensive experience in studying the digital asset market in Asia, I must admit that Singapore has truly taken the lead in terms of fostering a conducive environment for cryptocurrency businesses. Having closely followed both Singapore and Hong Kong’s regulatory developments, I can confidently say that the city-state is leaving its counterpart in the dust.
In comparison to Hong Kong, Singapore’s approach towards issuing cryptocurrency licenses has advanced more swiftly. The regulatory challenges in Hong Kong have hindered its pace of development in this area.
2024 saw Singapore taking significant steps towards establishing itself as a major international center for cryptocurrency businesses, with 13 fresh licenses being handed out, nearly doubling the number given out the previous year, as reported by Bloomberg.
The primary recipients of the licenses were predominantly large exchanges such as OKX and Upbit, alongside other companies like Anchorage, BitGo, and GSR. Meanwhile, Hong Kong has experienced delays in its endeavor to keep pace, with its licensing procedure progressing slowly, according to the report. It mentions that both cities are attempting to lure digital asset firms by providing unique regulatory frameworks, tokenization initiatives, and sandboxes that promote innovation.
According to Angela Ang, senior policy advisor at TRM Labs, Hong Kong’s regulatory framework for exchanges is stricter in several significant aspects such as management of customer assets and token approval and removal processes. Moreover, she suggests that this stringency could potentially make Singapore a more attractive option.
7 platforms have been fully licensed by Hong Kong, four of which received approval in December with certain limitations. However, exchanges like OKX and Bybit decided not to proceed with their applications without disclosing the reasons behind their decision. To maintain safety, Hong Kong only permits trading in well-established cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), while limiting trades on smaller, more volatile tokens.
According to Bloomberg, one factor hindering Hong Kong’s competitiveness in the crypto space is China’s influence, where digital currency trading is prohibited. David Rogers, CEO of market maker B2C2 in the region, notes that Hong Kong’s unique connection with China sets it apart from other countries in terms of risk. Rogers adds that Singapore’s welcoming atmosphere makes it a reliable and enduring option for establishing a regional hub.
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2024-12-24 10:29