Singapore gains edge over Hong Kong in crypto licensing

Analysts attribute Hong Kong’s challenges to restrictive policies and China’s influence, making Singapore a more attractive base for crypto businesses in Asia.

Singapore will require digital bunkering services from April 2025, marking a global first in large-scale adoption.

Singapore has solidified its position as a leading hub for the cryptocurrency industry, granting 13 new licences in 2024, double the number issued the previous year. Major firms like OKX, Upbit, Anchorage, and BitGo have benefited from the city-state’s supportive regulatory environment, which encourages innovation and tokenisation projects.

Meanwhile, Hong Kong’s slower approach has hampered its competitiveness. Though the city has fully licensed seven platforms, including four in December, restrictive policies on asset custody and token listings have deterred some firms. Notable exchanges like OKX and Bybit have withdrawn their applications without explanation, highlighting the challenges posed by the region’s cautious framework.

Analysts point to China’s influence as a limiting factor for Hong Kong’s crypto ambitions. With crypto trading banned in mainland China, Hong Kong faces a unique risk profile. By contrast, Singapore’s forward-thinking regulations and welcoming environment have made it a preferred choice for firms seeking a secure, long-term base in Asia.