Singapore Issues 13 Crypto Licenses in 2024, Surpassing Hong Kong’s Efforts

China’s strict ban on cryptocurrencies has pushed many crypto traders to find safer markets. This has worked in Singapore’s favor, as the city has become a top destination for crypto companies. Unlike Hong Kong, which has slow approval processes and stricter rules, Singapore offers a more crypto-friendly environment for digital assets. 

Singapore Outpaces Hong Kong in Crypto Licenses

In 2024, Singapore has taken the lead in the cryptocurrency sector, issuing 13 licenses to crypto companies this year, surpassing Hong Kong’s efforts. The Monetary Authority of Singapore (MAS) is on track to issue these licenses by 2024, double the number granted last year and more than Hong Kong, which is also striving to become a crypto hub. As per the Bloomberg report, Singapore’s regulatory environment has attracted major players, including exchanges like OKX and Upbit. 

On the other hand, Hong Kong is lacking behind other countries, so far they have only approved 7 licenses and issued several temporary licenses. The strict regulations in Hong Kong can prove fatal as big institutions can easily turn their focus on other countries causing a financial disruption. 

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Singapore vs Hong Kong

Singapore’s regulatory system is seen as more supportive and stable, making it a safer place for crypto companies to grow. Firms like B2C2 have chosen to apply for licenses in Singapore to reduce risks. David Rogers, CEO of cryptocurrency market maker B2C2 Ltd has urged more crypto exchanges to apply for licenses in Singapore as a way to manage risks and expand their businesses. 

Interestingly, Singapore’s initiatives, like Project Guardian and Global Layer 1, led by the Monetary Authority of Singapore, will increase asset tokenization and blockchain adoption in financial markets. These efforts make Singapore a stable and attractive hub for digital asset companies looking for a regional base.

However talking about Hong Kong’s market, Angela Ang, senior policy adviser at consultancy TRM Labs, stated that Hong Kong’s tougher rules around asset custody and token listing have made it less appealing to new crypto firms. While Hong Kong has tried to attract crypto firms with initiatives like Bitcoin ETFs and a digital green bond, Singapore has done better in drawing companies.

Conclusion

Singapore is no doubt creating a secure place for crypto exchanges while other nations are still working on regulations and restricting cross-border transitions Singapore is paving the way for innovation in the country. Recently Ripple launched its stablecoin RLUSD in Singapore while it is still waiting for regulatory approval in the US. This is one of the best examples of cross-border payments. 

But looking at the global scale despite the ban, China showed its interest in Bitcoin to leverage this industry to support their economy and if they jump into the crypto game it will be a serious threat for many countries depending largely on Bitcoin.