Singapore has granted 13 cryptocurrency licenses to main trade gamers, together with OKX, Upbit, Anchorage, BitGo, and GSR, up to now 12 months. This marked greater than double the licenses issued by the city-state in 2023.
In the meantime, Hong Kong’s efforts to determine itself as a crypto-friendly monetary middle have lagged, with its licensing course of progressing at a slower tempo, in line with a current report from Enterprise Customary.
Each Singapore and Hong Kong purpose to attract digital-asset companies by way of devoted licensing regimes, tokenization initiatives, and regulatory sandboxes. Nevertheless, the cities’ progress in reaching these objectives has been uneven.
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Hong Kong Has Licensed Simply Seven Platforms
Whereas Singapore’s streamlined approval course of has made it a most well-liked vacation spot, Hong Kong has totally licensed simply seven platforms, 4 of which acquired restricted approvals in December.
A number of outstanding exchanges, together with OKX and Bybit, have withdrawn their Hong Kong functions, citing regulatory challenges.
Hong Kong’s stricter guidelines, permitting buying and selling solely in extremely liquid cryptocurrencies like Bitcoin and Ether, have additional constrained its enchantment. The exclusion of smaller tokens, generally known as altcoins, limits alternatives for crypto companies in search of broader market publicity.
China’s affect additionally weighs closely on Hong Kong’s crypto ambitions, because the mainland’s blanket ban on cryptocurrency buying and selling creates a singular danger profile for the town.
JUST IN:
Hong Kong SFC approves and lists 4 new #Bitcoin and crypto buying and selling platforms.
China is getting ready
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— Bitcoin Journal (@BitcoinMagazine) December 18, 2024
In distinction, Singapore gives a extra secure and supportive atmosphere for digital-asset companies, in line with David Rogers, regional CEO at market maker B2C2 Ltd. He described Singapore as a “secure, long-term selection” on account of its balanced regulatory method.
Each cities have made strides in fostering institutional blockchain adoption. Singapore’s Financial Authority launched Venture Guardian and World Layer 1 in November to advance asset tokenization.
In the meantime, Hong Kong facilitated the sale of $770 million in digital inexperienced bonds utilizing HSBC’s tokenization platform.
Regardless of these efforts, Hong Kong’s makes an attempt to generate enthusiasm for digital-asset merchandise have fallen brief. The town’s spot Bitcoin and Ether ETFs, launched in April, have attracted simply $500 million in property—far behind the $120 billion managed by related merchandise within the U.S.
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Hong Kong Accelerates Crypto Regulation
Just lately, the Hong Kong authorities introduced plans to implement a compulsory crypto asset reporting framework by 2026.
The proposed crypto asset reporting framework would require tax-paying residents in the nation to yearly report their crypto accounts and transactions.
Moreover, Hong Kong additionally stated it’s rolling out a plan to exempt non-public fairness funds, hedge funds, and the funding autos of ultra-wealthy people from taxes on positive aspects from cryptocurrencies, non-public credit score investments, and different property.
The proposal claims that taxation is “one of many key issues” for asset managers when selecting the place to base their operations. By making a “conducive atmosphere,” the Hong Kong authorities goals to draw international traders and crypto companies.
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The submit Singapore Points 13 Crypto Licenses In 2024, Outpacing Hong Kong’s Gradual Progress appeared first on 99Bitcoins.
