December 27, 2024
By Our Correspondent
In 2024, Singapore has emerged as a frontrunner in the cryptocurrency industry, having issued 13 licenses to crypto firms this year, outpacing the efforts of Hong Kong. The Monetary Authority of Singapore (MAS) is set to grant these licenses by the end of 2024, effectively doubling the number awarded in the previous year and surpassing Hong Kong, which is also aiming to establish itself as a crypto hub. According to a Bloomberg report, Singapore’s regulatory framework has drawn significant interest from major players, including exchanges such as OKX and Upbit.
Conversely, Hong Kong is lagging behind other nations, having approved only 7 licenses thus far, along with several temporary licenses. The stringent regulations in Hong Kong may deter large institutions, prompting them to redirect their focus to more favorable jurisdictions, potentially leading to financial instability.
Singapore’s regulatory landscape is perceived as more conducive and reliable, providing a safer environment for crypto enterprises to thrive. Companies like B2C2 have opted to seek licenses in Singapore to mitigate risks. David Rogers, the CEO of cryptocurrency market maker B2C2 Ltd, has encouraged more crypto exchanges to pursue licensing in Singapore as a strategy to manage risks and broaden their operations.
Notably, Singapore’s initiatives, such as Project Guardian and Global Layer 1, spearheaded by the Monetary Authority of Singapore, are set to enhance asset tokenization and the adoption of blockchain technology within financial markets. These initiatives position Singapore as a stable and appealing hub for digital asset firms seeking a regional presence.
Angela Ang, a senior policy adviser at TRM Labs, remarked that the stringent regulations regarding asset custody and token listings in Hong Kong have diminished its attractiveness to emerging cryptocurrency firms. Although Hong Kong has made efforts to entice these companies through initiatives such as Bitcoin ETFs and a digital green bond, Singapore has proven to be more successful in attracting them.
Singapore is undoubtedly establishing a secure environment for cryptocurrency exchanges, while other countries continue to grapple with regulatory frameworks and limitations on cross-border transactions. This proactive approach is fostering innovation within the nation. Recently, Ripple introduced its stablecoin RLUSD in Singapore, while it remains in a state of regulatory limbo in the United States. This serves as a prime example of effective cross-border payment solutions.
On a global scale, despite its prohibitive stance, China has expressed interest in Bitcoin as a means to bolster its economy. Should China decide to engage actively in the cryptocurrency sector, it could pose a significant challenge to numerous countries that heavily rely on Bitcoin.
