tl;dr
Singapore has emerged as a leading crypto hub in Southeast Asia, issuing 13 crypto licenses in 2024, more than double the previous year. The country's regulatory-friendly environment has outpaced Hong Kong's efforts, attracting major exchanges like OKX and Upbit. Singapore's flexible policies aim to...
Singapore has emerged as a leading crypto hub in Southeast Asia, issuing 13 crypto licenses in 2024, more than double the previous year. The country's regulatory-friendly environment has outpaced Hong Kong's efforts, attracting major exchanges like OKX and Upbit. Singapore's flexible policies aim to attract digital asset firms, with Independent Reserve becoming the first exchange to list Ripple's stablecoin RLUSD.
This year, Singapore licensed powerhouse exchanges OKX and Upbit and other firms like BitGo, GSR, and Anchorage. The city-state continues to advance its agenda to attract digital asset firms by offering flexible token listing and asset custody policies. On Tuesday, Independent Reserve became the first cryptocurrency exchange in Singapore to list RLUSD, Ripple’s USD-backed stablecoin. This integration will likely improve the client experience for the exchange’s Singapore-based clients by enabling efficient cross-border liquidity solutions, resulting in faster and more cost-effective global transactions.
Singapore has a particular advantage over Hong Kong, where a similar licensing regime has slowly taken off. Although regulators intend to authorize more exchanges by year-end, only seven platforms have been fully licensed in Hong Kong, with four receiving approvals this week. A further seven hold provisional permits, while prominent exchanges OKX and Bybit withdrew their applications without explanation.
Due to a restrictive licensing regime, Hong Kong has fallen behind in its business appeal for crypto firms. The state’s regulations currently limit cryptocurrency trading to more liquid assets such as Bitcoin and Ethereum, excluding other tokens from trading. Analysts point to China’s regulatory stance on crypto as a potential constraint on Hong Kong’s ambitions to become a leading crypto hub. In contrast, Singapore’s forward-thinking regulatory framework and overall supportive environment have positioned it as a more attractive and stable long-term base for crypto businesses in greater Asia.