In 2024, MAS issued 13 Major Payment Institution licenses for crypto exchanges, more than double the number from 2023, underscoring Singapore's growing dominance in the crypto sector.

The Payment Services Act (PS Act), effective January 2020, introduced an activity-based licensing framework that tailors regulations to specific service provider activities, enhancing clarity and compliance for crypto operators.

Hong Kong's virtual asset service provider licensing regime, introduced in 2023, has faced implementation delays, causing frustration among potential applicants and driving some to seek opportunities in more favorable jurisdictions.

Despite its challenges, Hong Kong is working to improve its regulatory framework and promote blockchain innovation to better position itself in the digital asset landscape.

In contrast, Hong Kong's regulatory environment is perceived as unclear and restrictive, with only seven fully licensed crypto exchanges as of 2024, hampering its competitiveness against Singapore.

Singapore has firmly established itself as a global leader in cryptocurrency and blockchain technology, attracting major industry players due to its stable and innovative environment.

The Monetary Authority of Singapore (MAS) has implemented a well-designed regulatory framework that balances innovation with investor protection, resulting in over 200 licensed payment institutions and a significant increase in digital payment token service applications.

MAS Managing Director Chia Der Jiun emphasizes the importance of a balanced regulatory approach that mitigates risks while fostering growth and innovation in the crypto space.

Singapore's regulatory framework has evolved in response to past market volatility and the collapse of crypto firms, leading to stricter requirements and enhanced risk management measures introduced in 2024.

Geopolitical factors, such as Singapore's political stability and business-friendly climate, further enhance its attractiveness to global crypto operators compared to Hong Kong's complex relationship with mainland China.

The rivalry between Singapore and Hong Kong has broader implications for the global crypto industry, as both cities help drive growth and set regulatory benchmarks for other regions.