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Beginning with Bitcoin ETF approvals and ending with Bitcoin hitting $100K, 2024 has been a stellar year for crypto. For one particular city-state, crypto has been an exceptionally good sector.
According to a study by ApeX Protocol, Singapore has topped the rankings for crypto jurisdictions. The study assessed the world’s top regions based on key metrics, including blockchain patents, industry-related jobs, and the number of crypto exchanges operating in each country.
With a composite score of 85.4, Singapore tops the table, ahead of Hong Kong's 82.7. Despite having a population of fewer than 6 million, Singapore boasts 1,600 blockchain patents, 2,433 jobs in blockchain-related industries, and 81 crypto exchanges.
Meanwhile, Hong Kong Kong has issued 890 blockchain patents and only 1,163 blockchain jobs.
Hong Kong stood out for its well-established financial infrastructure, which facilitates seamless integration of blockchain technology and cryptocurrency exchanges.
This year alone, Singapore approved 14 crypto licenses for exchanges including OKX, Upbit, Anchorage, Bitgo, and GSR -more than doubling the licenses awarded by the city-state last year.
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Meanwhile, approvals in Hong Kong have been slower. The city only has seven fully licensed platforms in total. Four of these approvals were dolled out earlier this month.
The newly licensed platforms include Accumulus GBA Technology Co., DFX Labs Company, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI).
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“Hong Kong’s regulatory regime for exchanges is more restrictive in a number of ways that matter – such as custody of customer assets and token listing and delisting policies,” said Angela Ang, senior policy adviser at consultancy TRM Labs. “This may have tipped the balance in Singapore’s favour.”
Nonetheless, Hong Kong's spot crypto ETF market is expected to see "substantial growth in 2025" according to OSL managing director, Ryan Miller.
In April 2024, Hong Kong introduced six spot bitcoin and ether ETFs. Despite this pioneering move, the reception has been lukewarm. As of December 11, the spot Bitcoin ETFs in Hong Kong have accumulated 4,560 BTC ($444.6 million), while Ethereum-focused funds hold 16,280 ETH ($59.6 million).
In stark contrast, U.S. spot crypto ETFs have witnessed unprecedented growth, with spot bitcoin ETFs amassing over $34.06 billion in net inflows and ether ETFs drawing $1.78 billion by early December.
The disparity underscores the challenges Hong Kong faces in competing with the U.S.'s established dominance in the crypto ETF space.
“In my opinion, the performance of a product should not be judged by a single figure or factor," Miller said. “The new U.S. administration's favorable stance toward the crypto industry, coupled with interest rate cuts, has positively impacted global sentiment and cryptocurrency prices."
“With ongoing regulatory support and growing investor interest, Hong Kong's crypto ETFs are well-positioned to thrive in the evolving global crypto landscape." he added.
