Singapore outruns Hong Kong in bid to become Asia’s crypto hub

Singapore is taking the lead in becoming Asia’s leading hub for digital assets, issuing 13 cryptocurrency licenses in 2024—more than double the number granted the previous year. The approvals include prominent players such as OKX, Upbit, Anchorage and BitGo.  

Its rival financial center Hong Kong has progressed slowly, issuing just seven full licenses to crypto platforms, with another seven provisional permits. Despite announcing intentions to accelerate approvals, Hong Kong’s restrictive regulatory framework, particularly around token listings and custody of customer assets, has deterred key players. Notable exchanges like OKX and Bybit have withdrawn their license applications in the city, citing difficulties in meeting the stringent requirements.  

Both cities are competing to attract digital asset firms through dedicated initiatives such as regulatory sandboxes, tokenization projects and supportive policies. However, Singapore’s approach has proven more appealing, focusing on facilitating innovation and interaction between emerging firms and established institutions.  

The Monetary Authority of Singapore (MAS) has launched state-backed initiatives like Project Guardian and Global Layer 1 to promote the commercialization of asset tokenization. These efforts are part of a broader strategy to integrate blockchain technology into mainstream financial operations. Meanwhile, Hong Kong has made strides by facilitating the sale of HK$6 billion (US$770 million) in digital green bonds, yet its impact on global markets has been limited compared to similar initiatives in the United States.  

One of Hong Kong’s most significant barriers is its limited scope of approved cryptocurrencies. The city permits trading in only the most liquid assets, such as Bitcoin and Ether, barring smaller altcoins that often drive innovation. Coupled with concerns about China’s influence, where cryptocurrency trading is outright banned, these restrictions have raised doubts about Hong Kong’s viability as a crypto hub. Singapore, by contrast, is seen as a “safe, long-term choice” for digital asset firms looking to establish regional headquarters.