Singapore surpasses Hong Kong as digital assets leader in 2024 with 13 crypto licenses issued

Singapore stepped up its efforts to become a leader in digital assets in 2024, while Hong Kong struggled to keep pace in the race to attract crypto businesses.

According to a Bloomberg report , Singapore issued 13 crypto licenses to various operators in 2024, including players like OKX and Upbit and global firms such as Anchorage, BitGo, and GSR.  The number of licenses issued by Singapore in 2024 doubled the ones issued in 2023. Yet, Hong Kong’s licensing program has been moving at a snail’s pace.

Both cities are competing to draw in digital-asset firms by offering supportive frameworks, tokenization initiatives, and regulatory sandboxes. Authorities in both jurisdictions view crypto as a way to strengthen their positions as global business hubs. However, their progress has not been consistent. Angela Ang is a Senior Policy Adviser at TRM Labs, and she said, “Hong Kong’s rules are more comprehensive in certain aspects such as customer asset custody and token policies, which might have swayed the balance in favor of Singapore. ”

OKX and Bybit have withdrawn their applications for Hong Kong crypto licenses

Hong Kong’s licensing process has faced delays, with regulators aiming to approve more exchanges by the end of the year. So far, the city has fully licensed seven platforms, including four with restrictions granted on December 18, while another seven hold provisional crypto licenses. Notably, major exchanges such as OKX and Bybit have withdrawn their applications for Hong Kong licenses.

Some firms are staying out of Hong Kong due to strict licensing rules. The city permits traders to deal in only the most liquid crypto, like Bitcoin and Ether. The custody and listing rules are unattractive to most investors who have chosen Singapore as their alternative.

Singapore’s innovative licensing approach drives it’s crypto success

Singapore is using a risk-adjusted approach to lure more crypto traders into the country. Its regulatory framework is seen as safe, presenting a long-term choice. The Monetary Authority of Singapore has sustained its continued push for innovation through projects like Project Guardian, which supports asset tokenization and bolsters the Singapore digital assets market.

Comparatively, the digital green bond initiative and both Bitcoin and Ether ETFs have not attracted significant attention in Hong Kong. The two ETFs have dismally performed, attracting a paltry $500 million, compared to the US, where they have attracted nearly $20 billion.

The Singapore framework may encourage partnerships between new players and veterans. Collaboration is a significant driver of the country’s growth in digital assets.

With both cities battling for dominance, Singapore’s balanced and inclusive approach grows its reputation as a global hub for innovation in digital assets.

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