Author: Ethan, Odaily
Recently, an undercurrent surrounding the ownership of the "Asian Crypto Center" has surged again.
On May 30, the Monetary Authority of Singapore (MAS) suddenly took a "zero-tolerance" stance by issuing new Web3 regulations (the key focus of which was previously compiled and published by Odaily), shocking the entire Southeast Asian crypto ecosystem.
On June 4, Hong Kong legislator Wu Jiezhuang voiced on X platform: "We welcome Web3 enterprises from Singapore to relocate to Hong Kong and are willing to provide policy and landing assistance." This statement is both an open invitation to the industry and a "relay" in the reshaping of the Web3 landscape.
Web3 has never been an exclusive game for a single region, but a new battlefield of global financial and technological collaborative competition. Singapore is reconstructing boundaries and clarifying jurisdiction through strict regulation, while Hong Kong is accelerating exploration through cautious openness. So, under the storm, where will be the safe haven for capital and innovation?
A "Heavy Punch" at Web3: Singapore's Tightened Regulation Triggers Industry Turbulence
On May 30, the Monetary Authority of Singapore (MAS) issued new DTSP regulations, requiring all institutions and individuals engaged in crypto token-related businesses to obtain a DTSP license by June 30, or cease operations. This regulation covers trading platforms, wallet service providers, DeFi protocols, Non-Fungible Token markets, and even KOLs publishing crypto research content. MAS's three major regulatory characteristics are summarized by the industry as: no buffer period (immediate implementation, no transition phase); full coverage (any digital asset service, regardless of registration location or operating mode, is included); zero tolerance (violations will face fines or criminal liability).
Particularly controversial is the expanded definition of "place of business" - even working from home in Singapore and serving overseas users is considered a regulatory target, making many entrepreneurs feel "unavoidable".
However, on June 6, MAS issued a supplementary clarification, adjusting the policy's scope of application to alleviate some market misunderstandings and panic (but to no avail, this "clarification" did not substantially relax regulatory requirements):
- Regulation focuses on institutions "only providing digital payment token or capital market token services to overseas clients", such DTSP will must be licensed, but MAS clearly stated "very few licenses will be issued", with most such institutions facing exit;
- Projects providing governance or functional token services (such as DAO platforms, GameFi item tokens, etc.) are not included in this regulatory framework and do not require licensing;
- Institutions already serving Singapore's domestic customers will continue under the existing regulatory framework, unaffected by the new rules, and can continue domestic and overseas business;
- No transition period is still set, with MAS emphasizing multiple public warnings about this policy direction since 2022, with only "a very small part" of institutions formally recognized as affected.
This clarification indicates that MAS aims to precisely strike potential cross-border money laundering risks from "overseas service providers", not a comprehensive blockade of the Web3 industry. However, it also clearly signals that after a series of reputation impacts like Three Arrows Capital, Hodlnaut, and FTX incidents, Singapore's financial regulatory style is comprehensively shifting from "open experimentation" to "risk prevention priority". This trend may end its imagination of a "Asian Crypto Haven" and push many startups into a dilemma of "either high-cost compliance or migration", also signaling that Singapore's Web3 ecosystem is entering a compliance reconstruction period: resources, structure, costs, and risk models will be redefined.
Embracing Web3: Hong Kong's Open Regulation and Policy Advantages Emerge
In stark contrast to Singapore's regulatory tightening, Hong Kong is accelerating its embrace of Web3 through a more flexible compliance system.
Since issuing the "Policy Declaration on Virtual Asset Development" in 2022, Hong Kong has gradually implemented core systems including VATP virtual asset trading platform licenses, stablecoin regulatory regulations, and OTC trading compliance, providing clear market expectations.
According to Hong Kong Securities and Futures Commission data, so far, 10 virtual asset trading platforms including OSL Digital Securities Limited, EXIO Limited, and Hash Blockchain Limited have obtained licenses, explicitly allowing retail investors to trade.
Moreover, in advancing product innovations in multiple subdivided tracks such as RWA (Real World Assets) tokenization, virtual asset pledging, and derivative pilots, Hong Kong is no longer "talking on paper":
In April this year, the world's first tokenized money market ETF (a Hong Kong dollar and US dollar money market ETF tokenization scheme collaborated by Bosera International and HashKey Group) was approved by the Securities and Futures Commission and landed in Hong Kong, also the largest virtual asset ETF market in the Asia-Pacific region;
Bosera HashKey ETFs listing ceremony held at Hong Kong Stock Exchange
On May 30, the Hong Kong Special Administrative Region government published the "Stablecoin Regulations" in the Gazette, meaning the regulations officially became law, setting a regulatory framework for stablecoin issuance and use.
In terms of capital attraction and startup support, Hong Kong is also increasing resource investment: for example, in enterprise introduction, since the virtual asset declaration in 2022 welcoming industry development, an unofficial count shows over a thousand Web3 companies have landed in Hong Kong, with Hong Kong Cyberport gathering nearly 300 Web3 enterprises and cumulative financing exceeding 400 million Hong Kong dollars; secondly, tax incentives are provided for qualified virtual asset transactions (but not yet detailed); in talent introduction, offering up to 32,000 Hong Kong dollars monthly landing subsidies and researcher grants; in policy, the government actively "attracts merchants and talents", high-profile attracting headquarters migration of enterprises limited in Singapore.
Compared to Singapore's increasingly strict environment, Hong Kong appears particularly "friendly", more suitable for entrepreneurs to explore markets and conduct experimental innovations.
Dream and Reality: Is Hong Kong a "New Center" or a "Transition Station"?
However, when we try to conclude that "Hong Kong is more welcoming to crypto entrepreneurs than Singapore", we still need to maintain a calm perspective on reality.
From a factual perspective, Hong Kong indeed releases an attitude of "willing to take on more roles", but the industry is also clear that it still faces many problems and challenges: for instance, although policy statements are clear, implementation and landing progress remain uneven; infrastructure and supporting services are still imperfect, with early-stage startups facing significant barriers; and while tax policies have advantages, regulatory details still await more clarification.
From an entrepreneur's perspective, "migrating to Hong Kong" is not an immediate decision, but a "second-best choice with no better options". Some even argue that instead of establishing a new base in Hong Kong, it might be better to directly turn to crypto-friendly regions with looser policies and lower environmental costs like Dubai. The crypto measures of South Korea's new president are also worth observing.
In other words, today's Hong Kong is more like a "relay station" after Singapore's retreat, rather than an immediately complete ecosystem hub.
Conclusion: The Hong Kong-Singapore Dispute is Just a Microcosm of Asia's Web3 Ecosystem
Regulatory fluctuations, policy differences, and ecosystem evolution are external manifestations of capital and innovation forces' contest in the Web3 era.
This time, Singapore chose "establishing rules", while Hong Kong chose "attracting flow". In the long term, this is not a black-and-white contest, but a reshaping of ecosystem positioning: Singapore may evolve into a compliant asset management center, while Hong Kong takes on the role of a technological experimental field and Asian capital hub.
For entrepreneurs, what has always been most important is not betting on which city, but maintaining precise perception and rapid adaptability to policy trends, regulatory scales, and market spaces. The world of Web3 is always fluid, and the true "safe harbor" may not only be on the map, but also in the hearts of every team making clear-headed decisions.
