Singapore pulls ahead of Hong Kong in race to become digital-assets hub

Singapore forged ahead with efforts to formulate a digital-assets hub in 2024, while rival financial center Hong Kong has struggled to gain traction.

Singapore doled out 13 crypto licenses in 2024 to a range of crypto operators including top exchanges OKX and Upbit, as well as global heavyweights Anchorage, BitGo and GSR. That’s more than double the licenses awarded by the city-state the previous year. A similar licensing regime in Hong Kong has been slow to progress.

Both cities are bidding to entice digital-asset firms to their shores with dedicated regimes, tokenization projects and regulatory sandboxes. Local authorities see in crypto the potential to boost the allure of their respective jurisdictions as global business hubs, but progress has been uneven.

“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 favor.”