Flexibility vs. Prudence
Hong Kong’s crypto policy has taken a sharp turn since 2023. After introducing the VASP licensing regime, the city continued loosening restrictions throughout 2024–2025. Retail investor access is expanding, licensed exchanges like HashKey and OSL are fully operational, and spot ETFs are now available—clearly, the approach has shifted from banning to regulating.
Singapore, on the other hand, is sticking to a more cautious strategy. The MAS recognizes crypto as a legitimate asset class, but its stance on investor protection is firm—advertising is tightly regulated, leverage is discouraged, and stablecoin issuance is under intense scrutiny. It’s clear: Singapore is building a dam, while Hong Kong is trying to grow the pond.
Market Liquidity and Activity
By Q2 2025, Hong Kong has rolled out five spot BTC/ETH ETFs with a combined daily trading volume of $610 million—well ahead of Singapore’s $240 million. This momentum is fueled by global exchange entries and policy tailwinds. Coinbase’s Asia arm and Matrixport, among others, are setting up operations in Hong Kong.
Singapore’s DeFi ecosystem is strong, but retail involvement is limited by policy. Though its Total Value Locked (TVL) in DeFi is growing, it still lacks the excitement and capital influx Hong Kong is currently enjoying.
Capital Magnetism and Strategic Alliances
Hong Kong’s strategic position is hard to beat. It taps into mainland China’s investor pool and increasingly attracts Middle Eastern money. In April 2025, it signed a cross-border crypto regulation pact with the Abu Dhabi Global Market (ADGM). And with ETFs live, local brokerages offer crypto products seamlessly to clients.
Singapore, meanwhile, attracts Western family offices and Japanese or Korean institutional money. It functions more like a wealth management node than an exchange hub, prioritizing long-term policy stability over flashy growth.
Talent and Web3 Innovation Ecosystem
Hong Kong is ramping up incentives—like its Web3 Innovation Grant—but still trails in developer culture and grassroots projects.
Singapore’s ecosystem is mature and rapidly growing. In 2025, Binance Labs and Temasek launched a joint incubator in Singapore, onboarding 200+ projects, including DePIN protocols and cross-chain solutions. Top names like LayerZero and Immutable have set up APAC headquarters there.
Tax Policies and Capital Access
Both regions offer investor-friendly tax treatment—no capital gains tax, no tax on crypto profits.
But Singapore’s banking system is a step ahead in stablecoin-friendly fiat gateways. OTC desks handle USDC/USDT smoothly, and cross-border USD/SGD channels are reliable and fast. Hong Kong still has occasional frictions with CNY-linked banking services.
Retail Investor Access
Hong Kong’s retail access is rapidly expanding. Since HashKey Pro opened retail accounts in early 2025, signups surged by 52% in just one month. Forums, X (Twitter), and financial blogs have seen a spike in crypto chatter.
Singapore restricts direct exposure. MAS recommends individuals use licensed funds, ETFs, or structured products. It’s safer, sure—but much less exciting.
Key Milestones in 2025
| City | Event | Impact |
|---|---|---|
| Hong Kong | Mar 2025: First spot ETH ETF goes live | Drew $1B in capital, first in Asia |
| Singapore | Feb 2025: Custody regulation upgrade | Enabled crypto asset inclusion for family offices |
| Hong Kong | Jan 2025: HashKey Pro opens retail access | Daily active users jumped 64% |
| Singapore | Mar 2025: Immutable opens APAC HQ | Boosted Web3 gaming and innovation footprint |
Head-to-Head Comparison
| Category | Hong Kong | Singapore |
|---|---|---|
| Regulatory Flexibility | High (pro-market stance) | Conservative (risk-averse) |
| Retail Access | Open | Limited |
| ETF Availability | Fully launched | Not yet available |
| Capital Source | China & Middle East | Western & East Asian institutions |
| Developer Ecosystem | Growing, early-stage | Mature, rapidly expanding |
| Tax Environment | Favorable | Favorable |
| Overall Potential | Trading & finance hub | Compliance & asset custody hub |
Your Take?
- If you’re a retail investor, do ETFs and open access make Hong Kong more attractive?
- If you’re a builder, is Singapore’s regulatory clarity and developer scene more compelling?
Let us know in the comments below.
