The coordinates of Web3 are constantly flowing, and the true "safe haven" is not just on the map, but in the hearts of teams capable of making clear decisions.
Author:Ethan
Original:Odaily
Recently, an undercurrent surrounding the ownership of the "Asian Crypto Center" has surged again.
On May 30, the Monetary Authority of Singapore (MAS) suddenly issued a Web3 new regulation with a "zero-tolerance" attitude (the key points of which were previously compiled by Odaily), shocking the entire Southeast Asian crypto ecosystem.
On June 4, Hong Kong legislator Wu Jiazhuang voiced on the X platform: "We welcome Web3 enterprises from Singapore to relocate to Hong Kong and are willing to provide policy and landing assistance." This statement is both an open invitation to the industry and a "relay" in the reshaping of the Web3 landscape.
Web3 has never been the exclusive game of a single region, but a new battlefield of global financial and technological collaborative competition. Singapore is reconstructing boundaries and clarifying jurisdiction under strict regulation, while Hong Kong is accelerating exploration through cautious openness. So, under the storm, where will be the safe haven for capital and innovation?
A "Heavy Punch" at Web3: Singapore's Tightened Regulation Causes Industry Turbulence
On May 30, the Monetary Authority of Singapore (MAS) issued the DTSP new regulation, requiring all institutions and individuals engaged in crypto token-related businesses to obtain a DTSP license by June 30, otherwise they must cease operations. This regulation covers trading platforms, wallet service providers, DeFi protocols, Non-Fungible Token markets, and even KOLs publishing crypto research content. MAS's three regulatory characteristics are summarized by the industry as: no buffer period (immediate implementation, no transition phase); full coverage (any digital asset service, regardless of registration location or operating mode, is included in regulation); zero tolerance (violations will face fines or criminal responsibilities).
Particularly controversial is the expanded definition of "business premises" - even working from home in Singapore and serving overseas users is considered a regulatory target, making many entrepreneurs feel "nowhere to hide".
However, on June 6, MAS issued a supplementary clarification, adjusting the policy's scope of application to alleviate some market misunderstandings and panic (but to no avail, this "clarification" did not substantially relax regulatory requirements):
- Regulation focuses on institutions "only serving overseas customers with digital payment tokens or capital market tokens", such DTSPs must be licensed, but MAS clearly stated that "very few licenses will be issued", and most such institutions will face exit;
- Projects providing governance or functional token services (such as DAO platforms, GameFi item tokens, etc.) are not included in this regulatory framework and do not require licensing;
- Institutions already serving Singapore's domestic customers will continue under the existing regulatory framework and can continue domestic and foreign business;
- No transition period is still in place, MAS emphasizes that it has publicly warned about this policy direction multiple times since 2022, and only an "extremely small part" of institutions are officially recognized as affected.
This clarification indicates that MAS intends to precisely strike "overseas service providers" with potential cross-border money laundering risks, rather than comprehensively blocking the Web3 industry. However, it also clearly signals that after a series of reputation impacts like Three Arrows Capital, Hodlnaut, and FTX, Singapore's financial regulation style is shifting from "open experimentation" to "risk prevention priority". This trend may end the loose imagination of being an "Asian Crypto Haven" and push many startups into a dilemma of "either high-cost compliance or migration", also signaling that Singapore's Web3 ecosystem is entering a period of compliance reconstruction: resources, structure, costs, and risk models will be redefined.
Embracing Web3: Hong Kong's Open Regulation and Policy Advantages Emerge
In stark contrast to Singapore's regulatory tightening, Hong Kong is accelerating its embrace of Web3 through a more flexible compliance system.
Since issuing the "Policy Declaration on Virtual Asset Development" in 2022, Hong Kong has gradually implemented core systems including the Virtual Asset Trading Platform (VATP) license, stablecoin regulation, and OTC trading compliance, providing clear market expectations.
According to the Hong Kong Securities and Futures Commission data, so far, 10 virtual asset trading platforms such as OSL Digital Securities Limited, EXIO Limited, and Hash Blockchain Limited have obtained licenses, and retail investors are explicitly allowed to participate in trading.
Moreover, in promoting RWA (Real World Assets) tokenization, virtual asset staking, derivative product pilot programs, and other niche track product innovations, Hong Kong is no longer just "talking on paper":
In April this year, the world's first tokenized money market ETF (a Hong Kong dollar and US dollar money market ETF tokenization scheme co-developed by Bosera International and HashKey Group) was approved by the Securities and Futures Commission and landed in Hong Kong, making it the largest virtual asset ETF market in the Asia-Pacific region;
On May 30, the Hong Kong Special Administrative Region government published the "Stablecoin Regulations" in the Gazette, meaning the regulation has officially become law, setting a regulatory framework for stablecoin issuance and use.
In terms of capital attraction and entrepreneurial support, Hong Kong is also increasing resource investment: For example, in enterprise introduction, since the virtual asset declaration in 2022 welcoming industry development in Hong Kong, an unofficial count shows over a thousand Web3 companies have settled in Hong Kong, with nearly 300 Web3 enterprises gathered in Hong Kong Cyberport, with cumulative financing exceeding 400 million Hong Kong dollars; secondly, in taxation, tax incentives are provided for qualified virtual asset transactions (though not yet detailed); in talent introduction, offering up to 32,000 Hong Kong dollars monthly landing subsidies and research personnel funding; in policy, the government actively "attracts businesses and talents", prominently attracting companies restricted in Singapore to relocate their headquarters, and so on.
Compared to Singapore's increasingly strict environment, Hong Kong appears particularly "friendly", more suitable for entrepreneurs to explore markets and conduct experimental innovations.
Dreams and Reality: Is Hong Kong a "New Center" or a "Transition Station"?
However, when we try to conclude that "Hong Kong is more welcoming to crypto entrepreneurs than Singapore", we still need to remain calm about reality.
From a factual perspective, Hong Kong indeed shows a "willingness to take on more roles", but the industry is also aware that it still faces many problems and challenges: For instance, although policy statements are clear, implementation progress remains uneven; additionally, infrastructure and supporting services are still imperfect, with early-stage startups facing significant obstacles; and while tax policies have advantages, regulatory details still need more clarification.
From an entrepreneur's perspective, "moving to Hong Kong" is not an immediate decision, but a "second-best choice with no better options". Some even argue that instead of establishing a new base in Hong Kong, it might be better to directly turn to crypto-friendly areas with more relaxed policies and lower environmental costs, such as Dubai. The crypto measures of South Korea's new president are also worth observing.
In other words, today's Hong Kong is more like a "relay station" after Singapore's retreat, rather than an immediately fully-equipped new hub.
Conclusion: The Hong Kong-Singapore Dispute is Just a Microcosm of Asia's Web3 Ecosystem
Regulatory fluctuations, policy differences, and ecosystem evolution are external manifestations of capital and innovation forces' competition in the Web3 era.
This time, Singapore chooses to "establish rules", while Hong Kong chooses to "attract flow". In the long term, this is not a black-and-white contest, but a reshaping of ecosystem positioning: Singapore may evolve into a compliant asset management center, while Hong Kong takes on the roles of a technological experimental field and Asian capital hub.
For entrepreneurs, the most important thing has never been betting on which city, but always maintaining precise perception of policy trends, regulatory scales, and market spaces, with the ability to respond quickly. The Web3 world is always fluid, and the true "safe harbor" may not only be on the map, but also in the minds of every team making clear decisions.
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