Hong Kong and Singapore are leading a push among Asian financial hubs to establish dominance in the cryptocurrency sector, capitalizing on renewed global enthusiasm fueled by U.S. President Donald Trump’s pro-blockchain policies.
Bitcoin recently surged to nearly $110,000, with other digital assets also rallying on the back of Trump’s promises of regulatory clarity and support for blockchain innovation. Governments worldwide are taking note, and in Asia, Hong Kong and Singapore are moving aggressively to position themselves as premier destinations for crypto-related businesses.
Hong Kong Pushes for Global Liquidity
Hong Kong regulators are focused on attracting global liquidity to strengthen the city’s appeal as a crypto hub. On Wednesday, the Securities and Futures Commission (SFC) emphasized the importance of increasing market liquidity, including through riskier financial products such as crypto derivatives and margin financing.
“The one word that we need to think about always is liquidity,” said Eric Yip, executive director at the SFC, during an industry conference. “How do you bring liquidity to this market, hence commercial value, hence ecosystem?”
Hong Kong overhauled its legal framework for crypto exchanges in mid-2023, granting the SFC authority over licensing and regulation. The city has since issued Virtual Asset Trading Platform (VATP) licenses to 10 firms, allowing them to operate under strict compliance rules. While mainland China has banned cryptocurrency trading since 2021, Hong Kong’s pro-crypto stance has reportedly received tacit approval from Beijing, reinforcing its status as China’s financial gateway.
Despite its efforts, Hong Kong’s regulatory environment remains stringent, with numerous companies withdrawing applications due to compliance difficulties. The SFC has also faced challenges, including a shortage of specialized compliance personnel and delays in processing applications. As of early 2025, eight licensing applications remain pending, while 13 have been withdrawn.
Singapore’s Head Start in Regulation
Singapore, widely regarded as the most crypto-friendly jurisdiction in Asia, has taken a more structured approach. The Monetary Authority of Singapore (MAS) has issued Major Payment Institution (MPI) licenses to 30 companies, including major exchanges such as OKX.
Singapore’s proactive stance dates back to its 2022 Project Guardian initiative, which brought regulators and financial institutions together to explore asset tokenization. According to Leong Sing Chiong, MAS Deputy Managing Director, Singapore has “engaged early on central banks, regulatory bodies, and international standards-setting bodies,” giving it a regulatory edge.
The city-state’s framework for digital payments and crypto trading is built on a well-defined licensing regime. Companies seeking an MPI license must meet rigorous compliance standards, including a minimum capital requirement of S$250,000, security deposits with MAS, and independent audits.
In the first half of 2024, Singapore’s centralized exchanges received $13.5 billion in crypto-related transactions. Though less than Hong Kong’s $26.6 billion, Singapore’s long-established regulatory framework makes it a preferred destination for institutional investors seeking stability.
U.S. Policies Reshaping Global Crypto Hubs
Trump’s executive order declaring the United States the “crypto capital of the planet” is shifting global regulatory dynamics. His administration has pledged to provide “regulatory clarity and certainty” for blockchain and digital assets, reversing the hostile stance of the previous administration.
“The anticipation surrounding a new U.S. playbook is a game changer,” said Animoca Brands Group President Evan Auyang. “It will influence regulators worldwide.”
Asian markets are watching closely. Hong Kong is expanding its regulatory framework to include new token listings, staking, and derivatives trading. Singapore, meanwhile, is refining its licensing processes to maintain its competitive edge.
With institutional adoption growing, the rivalry between Hong Kong and Singapore is set to intensify. As regulatory clarity emerges from Washington, both cities are recalibrating their strategies to attract businesses eager to tap into the surging digital asset economy.
