Janice R. Andrews
Hong Kong and Singapore are emerging as Asia’s dominant cryptocurrency centers, capitalizing on the sector’s growth amid Bitcoin’s surge toward $110,000 and Donald Trump’s supportive stance on digital assets.
In Hong Kong, regulators are exploring expansion into more complex crypto products, including derivatives and margin trading. Eric Yip of the Securities and Futures Commission emphasized liquidity as their primary focus during a recent industry conference. Despite the FTX collapse’s aftermath, Hong Kong continues to pursue balanced regulations that protect investors while remaining business-friendly.
Singapore has established itself as a regulatory pioneer, granting Major Payment Institution licenses to 30 firms, including OKX. The Monetary Authority of Singapore launched Project Guardian in 2022, collaborating with global banks on asset tokenization. The country’s early regulatory engagement has made it an attractive destination for crypto businesses.
Trading volume data highlights the competition between these financial hubs. Hong Kong-based exchanges processed $26.6 billion in the first half of 2024, nearly doubling Singapore’s $13.5 billion, according to Chainalysis. Hong Kong’s licensing program has authorized 10 Virtual Asset Trading Platforms, though finding qualified compliance staff remains challenging.
While other Asian nations like Malaysia, Thailand, Japan, South Korea, and Cambodia are developing their crypto frameworks, they trail behind Hong Kong and Singapore’s progress. Trump’s commitment to making the US a crypto leader and promise of regulatory clarity could influence Asia’s regulatory landscape.
Both cities maintain distinct approaches to crypto regulation, but their rivalry continues to shape Asia’s digital asset future as institutional interest grows.
