Twice the Crypto Licenses in 2024: A Boost for Singapore’s Blockchain Ecosystem
In a significant development, Singapore has issued twice as many crypto licenses in 2024 compared to the previous year. This trend has caught the attention of industry experts, who believe that the city-state may emerge as the next major cryptocurrency hub in Asia.
Risk-Adjusted Approach to Crypto Regulation
According to William Croisettier, chief growth officer of ZKcandy, Singapore’s innovation-friendly regulatory regime is a key factor contributing to its growing appeal for Web3 companies. In an interview with Cointelegraph, he stated:
"The country adopts a risk-adjusted approach to crypto regulation, focusing on the biggest digital currencies to protect investors. Singapore also makes it easy for new crypto firms to interact with local banking partners, a provision considered a luxury in other parts of the world."
This risk-adjusted approach has been instrumental in making Singapore an attractive destination for blockchain and cryptocurrency companies. By providing a clear regulatory framework, the city-state is able to balance the need for innovation with the requirement for investor protection.
Singapore’s Blockchain Industry: A Leader in Asia
A recent study by ApeX Protocol found that Singapore has emerged as a global leader in blockchain, outpacing other major hubs such as Hong Kong. The study ranked the top blockchain jurisdictions based on patents, jobs, and exchanges, with Singapore taking the top spot.
Here are some key statistics from the study:
- Blockchain Patents: Singapore has 1,600 blockchain patents, significantly ahead of its closest competitor, Hong Kong (890 patents).
- Industry-Related Jobs: Singapore has 2,433 industry-related jobs, a staggering number for a country with less than 6 million inhabitants.
- Crypto Exchanges: The city-state is home to 81 crypto exchanges, further solidifying its position as a leading blockchain hub.
Singapore’s MPI Licenses: A Record Number in 2024
The Monetary Authority of Singapore (MAS) issued 13 Major Payment Institution Licenses for crypto exchanges in 2024, more than twice the number of licenses issued in 2023. This significant increase in licenses has further solidified Singapore’s status as a global blockchain leader.
According to Mouloukou Sanoh, co-founder and CEO of MANSA, these licenses are a testament to Singapore’s commitment to innovation and digital finance:
"With its clear regulations and support for innovation, Singapore attracts top companies and talent, fostering a thriving ecosystem. This proactive approach signals a strong commitment to digital finance, contrasting with Hong Kong’s more cautious stance."
Hong Kong: A Comparison with Singapore
While Singapore has made significant strides in issuing crypto licenses, its closest competitor, Hong Kong, still lags behind in terms of fully licensed crypto exchanges. However, Hong Kong is making progress on other fronts, including the approval of Bitcoin (BTC) and Ether (ETH) ETFs.
Conclusion
Singapore’s emergence as a hub for Web3 companies is driven by its innovation-friendly regulatory regime and clear approach to crypto regulation. With its leadership in blockchain patents, jobs, and exchanges, the city-state is poised to become one of the top destinations for blockchain and cryptocurrency companies in Asia.
As industry experts continue to monitor Singapore’s growth, it remains to be seen whether other countries will follow suit and adopt a similar approach to digital finance. One thing is certain, however: Singapore has cemented its position as a major player in the world of Web3 and blockchain.
References
- ApeX Protocol (2024). Blockchain Jurisdiction Rankings 2024.
- Cointelegraph (2024). Singapore issues twice as many crypto licenses in 2024, solidifying its position as a global blockchain leader.
- Mouloukou Sanoh (2024). Why Singapore is the go-to destination for blockchain and cryptocurrency companies.
