Singapore issues 13 crypto licenses, surpassing Hong Kong slower approval process, and strengthening its position as a crypto hub.
The Monetary Authority of Singapore (MAS) will issue 13 Major Payment Institution Licenses to cryptocurrency operators by 2024. It is a big step for Singapore’s developing crypto industry. And it sets Singapore ahead of Hong Kong, which is trying to become a global center for crypto. Only seven cryptocurrency platforms in Hong Kong have received full approvals, and the process has proved slower than expected.
Licenses granted by Singapore have more than doubled over the past year. This means Singapore is getting better positioned as a leading destination for crypto businesses. On the other hand, Hong Kong has issued just seven permanent licenses. Separately, the four platforms approved on December 18 are still under certain operating limitations. Further, seven temporary licenses were granted by Hong Kong. Bybit and OKX, however, have chosen to pull their applications to establish offices in Hong Kong.
Singapore Becomes Crypto Hub as Hong Kong Faces Tough Regulations
Hong Kong regulations are considered strict because their process is slow. Hong Kong has tougher exchange rules particularly around who is able to list which token, and who is actually holding the assets for customers, said a senior policy advisor at TRM Labs. As a result, Singapore has become an attractive source for many crypto operators. One Satoshi co-founder Roger Li added that Hong Kong holds its standards high and it is not as easy for companies to survive.
Moreover, the strict Chinese cryptocurrency ban has been working in Singapore’s favor. Chinese policy creates challenges for Hong Kong. David Rogers, Chief Executive of B2C2, stated that they chose Singapore because its supportive legislation creates long-term stability for crypto traders.
Singapore also has plans to move ahead with its plans to promote commercialization and asset tokenization. This proves the government is not going to hinder innovation in the crypto space. Hong Kong oversaw the sale of a digital green bond in the period. On the other hand, Bitcoin and Ether ETFs that came to market in April failed to develop much interest. But similar products in the U.S. raised billions of dollars.
According to Ben Charoenwong from INSEAD, the framework in Singapore pushes new crypto traders to cooperate with established institutions, driving innovation. However, Hong Kong stricter model weakens new traders’ opportunities of growth.
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