Why Singapore Outpaces Hong Kong In Attracting Crypto Operators

Why Singapore Outpaces Hong Kong In Attracting Crypto Operators

Singapore has emerged as a beacon of stability and innovation. Over the past few years, the city-state has positioned itself as a global leader in digital assets and blockchain technology, attracting some of the biggest names in the industry. This success is no accident. It is the result of a carefully designed regulatory framework by the Monetary Authority of Singapore (MAS), which has managed to strike a delicate balance between fostering innovation and ensuring investor protection.

With over 200 licensed payment institutions (MPIs) and a growing number of digital payment token (DPT) service applications, Singapore has become a prime destination for crypto operators looking to expand in Asia. In 2024 alone, MAS issued 13 Major Payment Institution (MPI) licenses for crypto exchanges, more than doubling the number issued in 2023. This surge in licensing reflects Singapore’s growing dominance in the cryptocurrency space and its ability to attract major players like Okx, Upbit and Bitgo.

However, Singapore’s success is not just about the numbers. It is about the city-state’s ability to create a regulatory environment that inspires trust, encourages innovation, and mitigates risks. I want to explore Singapore’s approach to cryptocurrency regulation, examines its competitive edge over Hong Kong, and considers the broader implications of its strategy for the global crypto industry.

Singapore’s Regulatory Framework: A Global Standard

Singapore’s success in the cryptocurrency space is built on the foundation of the Payment Services Act (PS Act), which came into effect in January 2020. This legislation introduced an activity-based licensing framework for payment services, including digital payment token (DPT) services. Unlike traditional regulatory models that impose blanket rules on entire industries, the PS Act tailors its requirements to the specific activities of each service provider. This nuanced approach allows MAS to address risks such as money laundering, terrorist financing, and market volatility without stifling innovation.

MAS Managing Director Chia Der Jiun has emphasized the importance of this balanced approach, describing the PS Act as a framework that “applies appropriate risk-mitigating regulations for the specific payment service, while allowing latitude for growth and innovation.” This dual focus on risk management and innovation has been instrumental in attracting a diverse range of crypto operators to Singapore. It sends a clear message to the industry: Singapore is open for business, but only for those who are willing to meet its high standards.

The results are undeniable. Since the PS Act’s implementation, the number of licensed MPIs in Singapore has grown as mentioned above. This rapid growth is a testament to the confidence that crypto operators have in Singapore’s regulatory environment. It also reflects MAS’s ability to adapt its rules to address emerging risks, as evidenced by the expansion of the PS Act’s scope in April 2024.

Learning from the Past: Turning Challenges into Strengths

Singapore’s regulatory approach has been shaped by the lessons of the past. The crypto market’s volatility in 2021 and the collapse of several high-profile firms during the crypto winter of 2022 exposed significant vulnerabilities in the ecosystem. These events served as a wake-up call for regulators around the world, highlighting the need for stronger safeguards to protect investors and ensure market stability.

MAS responded to these challenges with characteristic pragmatism. Instead of retreating from the crypto space, it doubled down on its efforts to create a robust regulatory framework. The expanded scope of the PS Act in 2024 introduced stricter requirements for DPT service providers, including enhanced risk management and compliance measures. These changes were not merely reactive; they were part of a broader strategy to future-proof Singapore’s regulatory framework against the rapidly evolving risks of the digital asset landscape.

This adaptability has been a key factor in Singapore’s success. By continuously refining its rules, MAS has been able to address new risks as they arise while maintaining a supportive environment for innovation. This dynamic approach has not only enhanced investor confidence but has also encouraged more crypto operators to set up shop in Singapore. It is a clear example of how regulation, when done right, can be a catalyst for growth rather than a barrier to it.

Why Singapore Outpaces Hong Kong in Crypto Licensing

While Singapore has been issuing crypto licenses at an unprecedented rate, Hong Kong has taken a more cautious approach. As of 2024, Hong Kong has only seven fully licensed crypto exchanges, a stark contrast to Singapore’s 13 MPI licenses issued in the same year. This disparity raises an important question: Why has Singapore been more successful than Hong Kong in attracting crypto operators?

One key factor is regulatory clarity. Singapore’s PS Act provides a clear and consistent framework for crypto operators, giving them the confidence to invest in the city-state. In contrast, Hong Kong’s regulatory environment has been criticized for its lack of clarity and frequent changes. While Hong Kong introduced a licensing regime for virtual asset service providers (VASPs) in 2023, the implementation process has been slow and cumbersome, deterring some operators.

Another factor is Singapore’s proactive approach to risk management. By addressing risks such as money laundering and market volatility upfront, MAS has created a safer and more stable environment for investors and operators alike. Hong Kong, on the other hand, has been slower to address these risks, which has undermined investor confidence. Singapore’s support for innovation has also given it a competitive edge. The city-state’s regulatory framework is designed to facilitate innovation while mitigating risks, creating a fertile ground for startups and established players alike. In contrast, Hong Kong’s regulatory environment has been perceived as more restrictive, limiting its appeal to innovative companies.

Finally, geopolitical factors cannot be ignored. Singapore’s political stability and business-friendly environment have made it a preferred destination for global crypto operators. While Hong Kong remains a major financial hub, its political situation and closer alignment with mainland China have raised concerns among some crypto operators, prompting them to look elsewhere.

Hong Kong’s Strategy: A Work in Progress

Despite its slower start, Hong Kong is making efforts to catch up with Singapore in the crypto space. The introduction of the VASP licensing regime in 2023 marked a significant step forward, and the Hong Kong Monetary Authority (HKMA) has been working to provide more clarity and support for crypto businesses. However, the city still faces several challenges.

One of the biggest hurdles is the perception that Hong Kong’s regulatory environment is overly restrictive. The VASP regime, for example, requires crypto exchanges to comply with stringent anti-money laundering (AML) and counter-terrorist financing (CTF) requirements, which can be burdensome for smaller operators. Additionally, the slow pace of licensing has frustrated some applicants, leading them to explore opportunities in other jurisdictions.

Another challenge is the competition from mainland China. While Hong Kong has positioned itself as a gateway to China, the mainland’s strict ban on cryptocurrency trading has limited the city’s ability to attract global crypto operators. This has put Hong Kong at a disadvantage compared to Singapore, which has no such restrictions.

That said, Hong Kong has some unique advantages. Its proximity to mainland China and its status as a global financial hub make it an attractive destination for companies looking to tap into the Chinese market. Additionally, the HKMA’s efforts to develop a central bank digital currency (CBDC) and promote blockchain innovation could help the city carve out a niche in the digital asset space.

The Broader Implications: A Win for the Global Crypto Industry

The competition between Singapore and Hong Kong is not just a regional story; it has broader implications for the global crypto industry. As these two financial hubs refine their regulatory frameworks and attract new players, they are helping to drive the growth and maturation of the digital asset ecosystem. Their efforts are setting benchmarks for other jurisdictions, demonstrating that it is possible to balance innovation with investor protection.

For Singapore, the challenge will be to maintain its momentum while addressing new risks and ensuring that its regulatory framework remains fit for purpose. The city-state’s success has attracted a growing number of crypto operators, but this also increases the potential for bad actors to exploit the system. MAS will need to remain vigilant and proactive in its approach to regulation.

For Hong Kong, the challenge will be to overcome its slow start and build a more attractive regulatory environment for crypto businesses. This will require greater clarity and consistency in its rules, as well as a more streamlined licensing process. Additionally, Hong Kong will need to leverage its unique advantages, such as its proximity to China and its status as a global financial hub, to differentiate itself from Singapore.

Conclusion: Singapore’s Winning Formula

Singapore’s rise as a global cryptocurrency hub is a testament to the power of thoughtful and proactive regulation. By balancing risk management with innovation, MAS has created an environment that attracts a diverse range of crypto operators while protecting investors and fostering growth. This approach has not only positioned Singapore as a leader in the digital asset space but has also set a benchmark for other jurisdictions to follow.

While Hong Kong has made strides in recent years, it still has a long way to go to catch up with Singapore. The city’s slow pace of licensing and restrictive regulatory environment have limited its appeal to crypto operators, giving Singapore a significant edge. However, with the right reforms and a renewed focus on innovation, Hong Kong has the potential to become a major player in the crypto space.

Ultimately, the competition between Singapore and Hong Kong is a win for the global crypto industry. As these two financial hubs continue to push the boundaries of what is possible in the digital asset space, they are helping to shape the future of finance. For now, however, Singapore remains the undisputed leader, setting the standard for what a crypto-friendly jurisdiction can achieve.

 

 

Source: https://www.benzinga.com/markets/cryptocurrency/25/04/44695782/why-singapore-outpaces-hong-kong-in-attracting-crypto-operators

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Building communities and navigating the future of Web3: Insights from Anndy Lian at Hong Kong Consensus 2025

Building communities and navigating the future of Web3: Insights from Anndy Lian at Hong Kong Consensus 2025

The Hong Kong Consensus 2025 spotlight stage was abuzz with energy as industry leaders gathered to discuss the future of Web3. The event featured a presentation by Thomas Kay, Vice President of WEEX Global, followed by a fireside chat with Anndy Lian, a best-selling author and prominent figure in the blockchain space.

While Kay’s presentation highlighted WEEX Global’s impressive growth trajectory and innovative features, it was the fireside chat with Lian that truly captivated the audience, offering deep insights into community building, the evolving role of exchanges, and the future of Web3 projects.

WEEX global: A brief overview

Kay opened the session with an overview of WEEX Global’s journey since its inception in 2018. The exchange has grown exponentially, boasting over 6 million users globally and a daily trading volume of US$5 billion.

With a focus on providing top-tier liquidity, a vast array of trading pairs, and innovative features like 400x leverage, WEEX has positioned itself as one of the fastest-growing exchanges in the world. Kay also emphasised the platform’s commitment to security, highlighting their 1,000 BTC protection fund and robust risk control systems.

While the presentation showcased WEEX’s achievements and future plans, including global expansion and compliance efforts, the real highlight of the session was the fireside chat with Lian.

Fireside chat: The art and science of community building

The fireside chat began with Kay asking Lian about the challenges of building communities in the Web3 space. Lian, known for his candid and insightful commentary, didn’t hold back.

“Building a community is a lot tougher than people think,” Lian remarked. He explained that the landscape has evolved significantly since 2018. Back then, users were less informed, and it was easier to attract them with simple incentives like airdrops.

Today, however, users are more sophisticated and demand real value. “You can’t just throw airdrops at people and expect them to stay. Communities need to be built on trust, value, and long-term vision,” he added.

Lian emphasised the importance of creating a loyal community that aligns with the project’s goals. “We don’t need communities that come for the incentives and leave the next day. We need communities that stay because they believe in what you’re building,” he said.

The role of exchanges in community building

Kay and Lian also discussed the role of exchanges in fostering strong communities. Kay noted that WEEX is committed to supporting projects that prioritise community engagement. “We want to back projects that are building loyal communities, not just chasing short-term gains,” he said.

Lian agreed, highlighting the need for unity within the Web3 ecosystem. “Exchanges, big projects, and smaller projects need to work together. Emerging markets like Russia, Kenya, and Brazil offer immense potential, and collaboration can unlock new opportunities,” he said.

He also stressed the importance of transparency, particularly when it comes to listing fees. “Normies are getting smarter. They’re asking tough questions about how exchanges operate, and transparency is key to building trust,” he noted.

The future of exchanges: Security and accessibility

When asked about the future role of exchanges in the Web3 space, Lian identified two key areas: security and accessibility. “Users want exchanges that offer an extra layer of security. They also want seamless on-ramp and off-ramp solutions to move their funds safely and efficiently,” he explained.

Kay echoed this sentiment, pointing to WEEX’s efforts to enhance security through their protection fund and compliance initiatives. He also acknowledged the challenges posed by “key opinion leaders” (KOLs) who often prioritise short-term traffic over long-term value. “Not every KOL is worth partnering with. We focus on working with genuine users and communities,” he said.

Memes as a gateway to Web3

The conversation then shifted to the role of meme coins in the Web3 ecosystem. Lian described meme coins as “door openers” that attract new users to the space.

However, he cautioned that their success depends on strong community backing and a clear roadmap. “A typical roadmap starts with a meme, followed by utility, and eventually evolves into something bigger, like merchandise or even global franchises,” he said.

Lian shared an example of how a meme-based project could transition into a sustainable business. “Imagine an ‘Anndy Café’ that becomes a global clubhouse for networking. The revenue from the café could be used to support the project, creating a self-sustaining ecosystem,” he suggested.

He also highlighted the importance of partnerships in ensuring the longevity of meme projects. “If you’re not in the top 300 or 500, survival is tough. Partnering with exchanges and other Web3 players can make a big difference,” he said.

The challenges of sustainability

Lian didn’t shy away from addressing the challenges faced by Web3 projects. He criticised projects with poor leadership and no clear plans for sustainability. “Most memes fail because they have no roadmap and no real leaders. They’re just boosting sentiment without delivering results,” he said.

He urged projects to focus on building real value for their communities. “Your community should work for their own bags. If they’re invested in the project’s success, it will last much longer,” he said. He also called on exchanges to prioritise quality over quantity when listing projects. “Instead of giving money to KOLs, give it to the projects that are building something meaningful,” he suggested.

Transparency and trust: The way forward

The fireside chat concluded with a discussion on the importance of transparency in the Web3 space. Lian praised WEEX for its efforts to be transparent about its operations and partnerships. “Transparency builds trust, and trust is the foundation of any successful community,” he said.

Kay agreed, emphasising that WEEX is committed to supporting projects that align with their values. “We’re not just looking for short-term gains. We want to build long-term partnerships with projects that share our vision,” he said.

Final thoughts

The fireside chat between Kay and Lian at Hong Kong Consensus 2025 offered a wealth of insights into the challenges and opportunities in the Web3 space. From the importance of community building to the evolving role of exchanges, the discussion highlighted the need for collaboration, transparency, and long-term vision.

As the Web3 ecosystem continues to grow, the lessons shared by Lian and Kay will undoubtedly serve as a valuable guide for projects, exchanges, and communities alike. Whether it’s through innovative features, strong partnerships, or a commitment to transparency, the future of Web3 will be shaped by those who prioritise value and trust above all else.

 

Source: https://e27.co/building-communities-and-navigating-the-future-of-web3-insights-from-anndy-lian-at-hong-kong-consensus-2025-20250326/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Consensus Hong Kong 2025: Fireside chat with Anndy Lian

Consensus Hong Kong 2025: Fireside chat with Anndy Lian

 

Fireside Chat: Community, Exchanges, and Sustainability in Web3

The fireside chat between Thomas Kay and Anndy Lian delved into the challenges and opportunities in the Web3 space. The conversation began with a discussion on community building.

Anndy Lian video timeline:

13:01 – “Building Community is a lot tougher than a lot of you guys think, especially comparing now to 2018 when huge influence of users are coming into the web3 space without much knowledge. But right now a lot of the users are actually a lot more educated.” – Anndy Lian
13:23 – “To really build a strong Community, you need to provide enough value for them. It’s not just like you have some airdrops, everybody just come to my community and then they stay with you. We don’t need this kind of community. We want communities that stay with you because of who you are or what you provide for them long term.” – Anndy Lian
15:51 – “If your community is built based on incentives, they’re not loyal. That’s basically someone that comes to you today for airdrops will go to another Community next day for another airdrop. That’s not something that we really look for.” – Anndy Lian
16:06 – “We want to back projects as much as possible to really build a very loyal community.”
16:14 – “Unity is the most important thing. Whenever I see a very good Community, not so much of a project to be honest, because if the project is good usually I think the community is actually walking the talk.” – Anndy Lian
17:03 – “If it’s real community members, you can see the action that they do, the kind of feedback that they give is very different. I treasure those.” – Anndy Lian
17:54 – “I definitely do hope you guys go the route where you guys really build a Unity community and not just a quick one-two months projects and then you move on to the next. I think that’s something that really should change in the space.”
18:25 – “It’s actually very obvious that users are looking for exchanges who can offer them an extra layer of security.”
18:44 – “What people really really want is about accessibility on-ramp, off-ramp. If an exchange is able to provide that additional punch to make sure that the money can safely flow out through a legitimate way, I think that would be a big plus.”
19:34 – “The KOLs are just like butterflies, they shift from A to B to C with the same users. Sooner or later exchanges’ role is also to help us see out what are the good KOLs that you should really talk to and work with.” – Anndy Lian
20:09 – “You become a really healthy flow of user base within the space. I see that in Asia a lot. I’m very active in South Korea, Japan, Southeast Asia. You see that the trend is very obvious – they’re looking for an exchange that they can be with for a long time.”
23:05 – “We see meme coins as a door opener. It’s an easy entry. People can explain very very well. The people I met are very enthusiastic.”
23:20 – “How these memes can survive depends on how many members you can get and what is the kind of narrative that you can provide. A typical roadmap is start with a meme followed by a nice utility.”
24:29 – “There should be a journey for all these memes to carry on because most of the memes, if you are not the top 300 or 500, there’s no way you can survive. So if you need to survive, you need to partner.” – Anndy Lian
25:11 – “Ultimately, you get your community to work for their own benefit. If they can work for their own benefit, the sustainability of the project can go a lot longer, super long. It could last to the next cycle. The problem with projects nowadays is that they have a nice meme, just a nice meme, but they have no plans, they have very poor leaders that don’t know anything apart from just posting ‘I’m feeling good today, the meme is very happy.’ We don’t want to hear this. We want to see price action, we want to see real Partnerships.” – Anndy Lian

Special thanks to Full Value Dan and his team for the team. Read the full article on https://anndy.com/event/consensus-2025-whats-next-for-weex-presented-by-thomas-kay-fireside-chat-with-anndy-lian/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j