Singapore to License 13 Crypto Companies in 2024, More Than Hong Kong

In 2024, the Monetary Authority of Singapore (MAS) has issued a total of 13 Major Payment Institution Licenses to companies operating in the crypto sector, outperforming Hong Kong in the race to build a crypto hub. The number of licenses issued this year has doubled compared to last year and has also surpassed Hong Kong. The companies licensed by MAS include the crypto exchange OKX, the largest crypto exchange in South Korea Upbit, the crypto bank Anchorage Digital, the crypto wallet and trading platform BitGo, as well as the market maker GSR Markets. Compared to Singapore, the licensing pace of Hong Kong has been slower than expected. Local regulators have stated that they plan to issue licenses to more crypto exchanges before the end of this year. Currently, Hong Kong has fully licensed seven crypto exchanges, with four new ones approved on December 18, although they still face some operational restrictions. In addition, Hong Kong has also issued 7 provisional licenses. Notably, many industry heavyweights such as Bybit and OKX have withdrawn their applications to set up offices in Hong Kong. Ben Charoenwong, a senior policy advisor at blockchain intelligence firm TRM Labs, opined that Hong Kong's exchange management system has many stringent requirements, particularly in areas such as customer asset custody, token listing and Delisting policies. This has made the Singapore market more attractive to crypto companies. Roger Li, the co-founder of the OTC exchange One Satoshi - one of the largest in Hong Kong - also stated: "Meeting the approval standards while also achieving profitability is a very high requirement, creating a major barrier for new businesses." China's blanket ban on cryptocurrencies has posed significant challenges for Hong Kong, while Asian economies are competing to become crypto hubs, providing Singapore with the opportunity to seize this opportunity. David Rogers, the regional managing director of market maker B2C2, shared: "Singapore has always maintained an open attitude towards digital assets, providing a favorable environment for crypto companies to develop sustainably. That's why we decided to apply for a license in Singapore to mitigate risks and expand our operations." To drive asset Tokenization and the development of digital financial products, MAS has announced two important plans in November. While the Hong Kong government is overseeing the deployment of HSBC's token platform and supporting the issuance of a 6 billion HKD (around $772,444,338) digital green bond, the launch of Bitcoin and Ethereum ETFs in April did not attract much investor interest, in contrast to the success of similar products in the US. The total amount raised from these products was only around $500 million (about $64,370,361), much lower than the $120 billion raised by US issuers. Compared to Hong Kong, Singapore has a clear advantage in its legal framework. Professor Ben Charoenwong from INSEAD Business School observed: "Singapore's legal framework encourages new crypto companies to collaborate with established institutions, while Hong Kong creates fewer opportunities for new companies, limiting innovation and creativity." Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions. Join Telegram: https://t.me/tapchibitcoinvn Twitter (X): https://twitter.com/tapchibtc_io TikTok: https://www.tiktok.com/@tapchibitcoin Itadori According to Zaobao