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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, in line with a latest report from Business Standard.
Each Singapore and Hong Kong intention to attract digital-asset companies by way of devoted licensing regimes, tokenization initiatives, and regulatory sandboxes. Nevertheless, the cities’ progress in reaching 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 popular vacation spot, Hong Kong has absolutely 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A number of distinguished exchanges, together with OKX and Bybit, have withdrawn their Hong Kong purposes, citing regulatory challenges.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 attraction. The exclusion of smaller tokens, referred to as altcoins, limits alternatives for crypto corporations looking 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 the 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 gives a extra steady and supportive surroundings for digital-asset corporations, in line with David Rogers, regional CEO at market maker B2C2 Ltd. He described Singapore as a “secure, long-term alternative” as a consequence of its balanced regulatory strategy.
Each cities have made strides in fostering institutional blockchain adoption. Singapore’s Financial Authority launched Venture 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 quick. Town’s spot Bitcoin and Ether ETFs, launched in April, have attracted simply $500 million in property—far behind the $120 billion managed by related 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 non-public fairness funds, hedge funds, and the funding automobiles of ultra-wealthy people from taxes on beneficial properties from cryptocurrencies, non-public credit score investments, and different property.
The proposal claims that taxation is “one of many key concerns” 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 publish Singapore Issues 13 Crypto Licenses In 2024, Outpacing Hong Kong’s Slow Progress appeared first on 99Bitcoins.
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