Singapore has granted 13 cryptocurrency licenses to main business gamers, together with OKX, Upbit, Anchorage, BitGo, and GSR, prior to now yr. 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 heart have lagged, with its licensing course of progressing at a slower tempo, based on a current report from Business Standard.
Each Singapore and Hong Kong purpose to attract digital-asset companies by devoted licensing regimes, tokenization initiatives, and regulatory sandboxes. Nonetheless, the cities’ progress in attaining 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 obtained restricted approvals in December.
A number of distinguished exchanges, together with OKX and Bybit, have withdrawn their Hong Kong purposes, citing regulatory challenges.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, often called altcoins, limits alternatives for crypto corporations searching for 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 novel threat profile for town.
JUST IN: Hong Kong SFC approves and lists 4 new #Bitcoin and crypto buying and selling platforms.
China is getting ready
pic.twitter.com/in0RdmRGfZ
— Bitcoin Journal (@BitcoinMagazine) December 18, 2024
In distinction, Singapore provides a extra steady and supportive surroundings for digital-asset corporations, based on David Rogers, regional CEO at market maker B2C2 Ltd. He described Singapore as a “secure, long-term alternative” on account of its balanced regulatory strategy.
Each cities have made strides in fostering institutional blockchain adoption. Singapore’s Financial Authority launched Undertaking Guardian and International 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. Town’s spot Bitcoin and Ether ETFs, launched in April, have attracted simply $500 million in belongings—far behind the $120 billion managed by comparable merchandise within the U.S.
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Hong Kong Accelerates Crypto Regulation
Lately, the Hong Kong authorities announced 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 said it is rolling out a plan to exempt personal fairness funds, hedge funds, and the funding automobiles of ultra-wealthy people from taxes on beneficial properties from cryptocurrencies, personal credit score investments, and different belongings.
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 surroundings,” the Hong Kong authorities goals to draw world traders and crypto companies.
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The submit Singapore Issues 13 Crypto Licenses In 2024, Outpacing Hong Kong’s Slow Progress appeared first on 99Bitcoins.
