Singapore's position on cryptocurrency licenses has overtaken Hong Kong's, where regulatory hurdles have slowed the city's progress.

Singapore Signaling progress in becoming a global hub for cryptocurrency business, the city-state has granted 13 new cryptocurrency licenses in 2024, double the number issued last year, Bloomberg reported. I've learned.

The licenses mainly went to large exchanges such as OK x and ObitIn addition to other companies such as Anchorage, BitGo, and GSR. At the same time, Hong Kong The report notes that both cities have faced delays in their efforts to catch up, as the licensing process moves slowly, adding that both cities aim to attract digital asset companies by offering special regulatory regimes, tokenization projects, and innovation-focused sandboxes.

As Angela Ang, senior policy advisor at forensic firm TRM Labs, noted, the regulatory regime for exchanges in Hong Kong “is more restrictive in a number of important ways – such as client asset stewardship and token listing and delisting policies,” adding further that this “may have "Tip the balance in favor of Singapore."

Hong Kong has fully licensed seven platforms, including four approved in December with some restrictions. However, exchanges like OKX and Bybit have withdrawn their orders without explaining why they did so. Due to its cautious approach, Hong Kong only allows the trading of the most liquid cryptocurrencies, such as Bitcoin (Bitcoin) and Ethereum (Ethereum), and trading is restricted to smaller, more volatile symbols.

Bloomberg says another factor limiting Hong Kong's ability to maintain its competitiveness in this area is the influence of China, where cryptocurrency trading is banned. David Rogers, regional chief executive of market maker B2C2, says Hong Kong's special relationship with China gives it a different risk profile compared to other countries. According to Rogers, Singapore's supportive environment makes it a "safe and long-term choice" as a regional hub.