Singapore’s Innovative Regulatory Regime Attracts Web3 Companies
Singapore is fast becoming a key destination for Web3 companies after the country issued twice as many crypto licenses in 2024 as in the previous year. According to William Croisettier, chief growth officer of ZKcandy, Singapore’s innovation-friendly regulatory regime may make it the next major cryptocurrency hub in Asia.
"The country adopts a risk-adjusted approach to crypto regulation, focusing on the biggest digital currencies to protect investors," Croisettier told Cointelegraph. "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."
Singapore’s Blockchain Ecosystem Thrives
A recent study by ApeX Protocol found that Singapore is a global leader in blockchain, surpassing countries like Hong Kong and the United States. The study ranked Singapore as the top blockchain jurisdiction based on patents, jobs, and exchanges.
Blockchain Jurisdiction Ranking
| Rank | Country | Blockchain Patents | Industry-Related Jobs | Crypto Exchanges |
| — | — | — | — | — |
| 1 | Singapore | 1,600 | 2,433 | 81 |
| 2 | Hong Kong | 890 | 1,163 | 52 |
The study’s findings are impressive considering the country’s small population of less than 6 million inhabitants. These numbers indicate that Singapore is a hub for blockchain innovation and investment.
Singapore Doubles Crypto Licenses in 2024
Singapore has made significant strides in crypto regulation, issuing 13 Major Payment Institution Licenses (MPI) to crypto exchanges in 2024. This number more than doubles the 6 licenses issued in 2023, according to local media reports.
The Monetary Authority of Singapore (MAS) has been proactive in regulating the crypto industry, providing a clear and supportive regulatory environment for Web3 companies. This approach has attracted top companies and talent, fostering a thriving ecosystem.
Comparison with Hong Kong
In contrast, Singapore’s closest competitor, Hong Kong, has only 7 fully licensed crypto exchanges operating in the country. However, Hong Kong is making progress on other fronts, such as approving Bitcoin (BTC) and Ether (ETH) ETFs in April 2024.
Hong Kong’s Regulatory Progress
- Approved first BTC and ETH ETFs in April 2024
- Started trading on April 30, 2024
While Singapore may have a lead in crypto licenses, Hong Kong is catching up with its regulatory progress. However, the two countries’ approaches to crypto regulation differ significantly.
Conclusion
Singapore’s emergence as Asia’s next major cryptocurrency hub is a testament to its innovative regulatory regime and supportive environment for Web3 companies. The country’s focus on protecting investors while promoting innovation has attracted top companies and talent, making it an attractive destination for Web3 investments.
As the crypto industry continues to grow, Singapore’s proactive approach to regulation may set a precedent for other countries to follow. With its clear regulations and support for innovation, Singapore is solidifying its position as a global blockchain leader.
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