A recent study revealed that Hong Kong and Singapore rank among the best international crypto hubs. The two countries have adopted friendly policies and regulations to boost the development of crypto innovation.
Recently the two countries have rivaled each other to become the first Asian crypto center. It was observed that financial regulators and policymakers in Singapore and Hong Kong have prioritized formulating friendly crypto policies and launching pilot projects for digital assets.
Which Country will Become Asia’s Next Crypto Center?
The remarkable efforts made by the two countries aim at creating a friendly environment for crypto firms to thrive. Also, Singapore and Hong Kong have been gearing toward mass crypto adoption.
In a previous report, Hong Kong has dominated a significant global market share in the crypto industry. The suitability of the Hong Kong market encouraged the best-performing crypto firms, such as BitMEX and the now-defunct Bahamian crypto exchange FTX to establish regional offices.
Also, the Amber Group has located its headquarters in Hong Kong. In an interview with the Bloomberg Group, the managing partner at Amber Group, Annabelle Huang, revealed that the Hong Kong head office was one of the biggest.
Huang stated that the company is seeking approval for a new virtual asset trading platform (VATP) license from the Hong Kong regulators. She stated that Hong Kong and the Singapore market are crucial in broadening Amber geographical presence.
Huang argued that the battle to become an Asian crypto hub had faced fierce competition as each country has struggled to maintain its market dominance. Reportedly, most fast-growing crypto firms demonstrated a solid attachment to the Hong Kong market despite operating in Singapore.
This has motivated the Hong Kong government to invest in developing Web3 projects and blockchain infrastructures to maintain a significant market position.
Review of Crypto Regulations in Singapore and Hong Kong
On the contrary, the exit of the Chinese from the crypto sector has propelled Singapore to acquire a promising market dominance in the digital world. The desire to outperform other Asian countries has compelled Singapore to launch seminars, workshops, and training on Web3, blockchain, and crypto.
Singapore hosted the Token2049 event a few days ago, attracting investors, businesses, and leaders worldwide. During the event, it was noted that most of the pro-crypto Chinese had shifted to the Singaporean markets.
The attendees of the Token2049 event witnessed that Singapore was a center for crypto convergence amid market recovery. Besides the efforts made by Singapore and Hong Kong to revolutionize the crypto sector, the digital regulations of the two countries are still undergoing reforms and amendments.
Following the fallout of FTX in 2019, Hong Kong and Singapore have adopted stricter crypto regulations to protect consumers and investors from exploitation. Surprisingly, the Singaporean authority adopted policies that prohibited retail investors from accessing some of the digital assets.
The monetary administration of Singapore (MAS) has banned the deceptive marketing of crypto assets. Also, the attempt to protect the investors has prompted the MAS team to publish reports warning about the volatility of crypto prices.
Correspondingly, Hong Kong regulators are seeking public participation in matters regarding the exchange-traded funds (ETFs) of cryptos. The Hong Kong Securities and Futures Commission (SFC) has developed policies that requires investors to complete registration to provide specific crypto services.
According to the SFC regulations, the crypto firms in Hong Kong must implement practical measures to safeguard consumers from abuse. A recent study demonstrated that the commendable achievements made by Singapore and Hong Kong inspired other countries to amend crypto regulations.
Elsewhere, the Japanese government tasked the Financial Services Agency (FSA) to formulate crypto regulations that will lead to the growth of digital space. The FSA team has prioritized developing rules that improve the security of the crypto transaction and uphold consumer protection regulations.
The regulation changes encouraged Amber Group to enter the Japanese market through a merger and acquisition deal with DeCurrent in 2022. During the acquisation the Amber team announced plans to provide crypto services for institutional investors.
A statement from the Amber team revealed that the suitability of Japan’s Web3 sector will continue to provide crypto firms with viable opportunities to explore.