Singapore is gaining momentum as a significant player in the world of cryptocurrency and blockchain technology. The country has issued twice as many crypto licenses in 2024 as it did in the previous year, making it an attractive destination for Web3 companies.

Innovation-Friendly Regulatory Regime

According to William Croisettier, chief growth officer of ZKcandy, Singapore’s innovation-friendly regulatory regime is a major reason why the country is becoming a hotspot for cryptocurrency and blockchain activity. He told Cointelegraph:

"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 favorable regulatory environment is creating a thriving ecosystem that attracts top companies and talent from around the world.

Singapore’s Blockchain Landscape

A recent study by ApeX Protocol found that Singapore is emerging as a global leader in blockchain technology. The country has:

  • 1,600 blockchain patents: This is a staggering number for a country with less than 6 million inhabitants.
  • 2,433 industry-related jobs: These numbers indicate a significant demand for skilled professionals in the blockchain space.
  • 81 cryptocurrency exchanges: This is a substantial increase from previous years and reflects Singapore’s growing importance as a hub for cryptocurrency trading.

These numbers put Singapore firmly ahead of its competitors, including Hong Kong, which ranked second in the study with 890 blockchain patents, 1,163 related jobs, and 52 cryptocurrency exchanges.

Singapore Issues 13 MPI Crypto Licenses

In another significant development, the Monetary Authority of Singapore (MAS) issued 13 Major Payment Institution Licenses for crypto exchanges in 2024. This is more than twice as many as were issued in 2023, when four full MPI licenses were granted to Blockchain.com, Coinbase, Crypto.com, and Ripple.

These licenses are a major milestone for the country’s cryptocurrency industry and may further solidify Singapore’s status as a global blockchain leader.

Contrasting with Hong Kong

While Singapore is making significant strides in its regulatory environment and issuance of crypto licenses, its closest competitor, Hong Kong, has been taking a more cautious approach. Despite this, Hong Kong has made progress on other fronts, including the approval of the first Bitcoin (BTC) and Ether (ETH) ETFs.

The Future of Web3 in Singapore

With its clear regulations and support for innovation, Singapore is attracting top companies and talent from around the world. This proactive approach signals a strong commitment to digital finance and may position Singapore as the next major cryptocurrency hub in Asia.

References

  • ApeX Protocol study on blockchain jurisdictions
  • Cointelegraph article on Singapore’s crypto licenses
  • Cointelegraph article on Hong Kong’s approval of Bitcoin (BTC) and Ether (ETH) ETFs