After Singapore "exited customers", Hong Kong became the "Corporate Capital of East Asia"?

Author: Ethan, Odaily Planet Daily

Recently, an undercurrent surrounding the ownership of the "Asian Crypto Center" has surged again.

On May 30, the Monetary Authority of Singapore (MAS) suddenly launched the new Web3 regulations with a "zero tolerance" attitude (an important focus in the new regulations. Previously, Odaily Planet Daily published a compilation of "All unregistered crypto companies must withdraw from Singapore, before the end of the month! No transition period!"), which shocked the entire Southeast Asian crypto ecosystem.

On June 4, Hong Kong Legislative Council member Wu Jiezhuang spoke on the X platform: "We welcome companies engaged in Web3 in Singapore to move to Hong Kong. We are willing to provide policy and implementation assistance." This sentence is not only a public invitation to the industry, but also a "relay" in the reshaping of the Web3 territory.

Web3 has never been a exclusive game for a single region, but a new battlefield for global finance and technology to compete in synergy. Singapore reconstructs borders and has clear jurisdiction in strong supervision, and Hong Kong is accelerating its exploration in cautious opening up. So, under the storm, where will it be a safe haven for capital and innovation?

"Hard attack" on Web3: Singapore's tightening of regulation has caused

industry turmoil

On May 30, the Monetary Authority of Singapore (MAS) issued new DTSP regulations (original text), requiring all institutions and individuals engaged in crypto token-related businesses to obtain a DTSP license before June 30, otherwise they must be closed. This provision covers trading platforms, wallet service providers, DeFi protocols, NFT markets, and even KOLs that publish cryptographic research content. The three major regulatory characteristics of MAS are summarized by the industry as: no buffer period (immediate execution, no transition phase); full coverage (as long as digital asset services are provided, regardless of the place of registration or operating model, they are included in the supervision); zero tolerance (violating regulations will face fines or criminal liability).

What is particularly controversial is the expansion of the definition of "business place" - even if it only works from home in Singapore and serves overseas users, it is regarded as a supervision target, which makes many entrepreneurs feel "unavoidable".

However, on June 6, MAS issued additional clarifications, making adjustments to the scope of policy application, trying to alleviate some market misunderstandings and panic (but to no avail, this "clarification" did not substantially relax regulatory requirements):

• Regulation focuses on institutions that “provides digital payment tokens or capital market token services only for overseas customers”. Such DTSPs will have to be licensed, but MAS clearly states that “very few will be issued” and that most such institutions will face exit;
• Projects that provide governance or functional token services (such as DAO platform, GameFi prop tokens, etc.) are not included in this regulatory framework and do not require license;
• Institutions that have served customers in Singapore continue to maintain their existing regulatory framework and can continue to conduct domestic and overseas business without being affected by the new regulations;
• There is still no transition period, and MAS emphasized that it has publicly warned of this policy direction many times since 2022, and only a "small" number of institutions have been officially identified as affected.

The clarification shows that MAS intends to accurately crack down on "official service providers" with potential cross-border money laundering risks, rather than completely banning the Web3 industry. But at the same time, it also sent a clear signal - after a series of credibility shocks such as Sanji Capital, Hodlnaut bursting, and FTX incidents, Singapore's financial regulatory style is shifting from "open trial" to "risk prevention first". This trend may end its loose imagination of "Asian crypto paradise", and has also put many startup projects in the dilemma of "either high compliance or migration or escape", and also indicates that Singapore's Web3 ecosystem is entering a period of compliance reshaping: resources, structure, cost and risk models will all be redefined.

Embrace Web3: Hong Kong's open regulation and policy advantages emerge

In sharp contrast to Singapore's tightening of regulation, Hong Kong is accelerating its embrace of Web3 through a more flexible compliance system.

Since the release of the "Policy Declaration on the Development of Virtual Assets" in 2022, Hong Kong has gradually implemented core systems including VATP virtual asset trading platform licenses, stablecoin regulatory regulations, and OTC over-the-counter trading compliance, providing clear expectations for the market.

According to data from the Hong Kong Securities Regulatory Commission, as of now, 10 virtual asset trading platforms including OSL Digital Securities Limited, EXIO Limited, and Hash Blockchain Limited have obtained licenses, and retail investors are clearly allowed to participate in trading.

In addition, in promoting product innovation in multiple segmented tracks such as RWA (real world assets) tokenization, virtual asset pledge, derivatives pilot projects, Hong Kong no longer "talks" on paper:

In April this year, the world's first tokenized currency market ETF (the tokenization scheme for the Hong Kong dollar and US dollar currency market ETF jointly developed by Bose International and HashKey Group) was approved by the China Securities Regulatory Commission and launched in Hong Kong. This is also the largest virtual asset ETF market in the Asia-Pacific region;

The listing ceremony of HashKey ETFs was held on the Hong Kong Stock Exchange

On May 30, the Hong Kong Special Administrative Region Government published the Stablecoin Ordinance in the Gazette, which means that the Ordinance has officially become a law and sets a regulatory framework for the issuance and use of stablecoins.

In terms of capital attraction and entrepreneurship support, Hong Kong is also increasing its resource investment: for example, in terms of enterprise introduction, since the virtual asset declaration was issued in 2022, the industry welcomed to develop in Hong Kong. According to informal statistics, thousands of Web3 companies have landed in Hong Kong, especially Hong Kong Cyberport has gathered nearly 300 Web3 companies, with cumulative financing of more than HK$400 million; secondly, in terms of taxation, tax incentives are provided for eligible virtual asset transactions (but not yet detailed); in terms of talent introduction, it provides up to HK$32,000 per month for talent implementation subsidies and researcher funding; in terms of policy, the government takes the initiative to "invest investment and attract restricted companies to relocate headquarters in Singapore, etc.

Compared with Singapore's increasingly strict environment, Hong Kong is particularly "friendly" at this time, and is more suitable for entrepreneurs to explore the market and innovate experimentally.

Dreams and Reality: Is Hong Kong a "new center" or a "transition station"?

However, when we try to make "Hong Kong welcomes crypto entrepreneurs more than Singapore" a conclusion, we still need to be calm about reality.

From a factual perspective, Hong Kong has indeed released the attitude of "willing to assume more roles", but the industry also knows that it still faces many problems and challenges: for example, although the policy statement is clear, the implementation progress is still unbalanced; in addition, the infrastructure and supporting services are still incomplete, and start-ups face considerable resistance in the early stages; and although tax policies have advantages, the downward regulation still needs to be clarified.

From the perspective of entrepreneurs, "migrating Hong Kong" is not a decision that hits the nail on the head, but a "sub-optimal choice under no more preferred." Some people even believe that instead of building new positions in Hong Kong, it is better to directly turn to crypto-friendly areas such as Dubai with loose policies and low environmental costs. The encryption measures after the new South Korean president take office are also worth observing.

In other words, today's Hong Kong is more like a "relay station" after Singapore retreats, rather than a new hub that immediately has a complete set of ecological closed loops.

Conclusion: The Hong Kong-New Zealand dispute is just a microcosm of the

Asian Web3 ecosystem

The swing of supervision, the differences in policies, and the evolution of ecology are all external manifestations of the game between capital and innovation forces in the Web3 era.

This time, Singapore chose to establish regulations and Hong Kong chose to "drain traffic". In the long run, this is not a black or white contest, but a reshaping of division of labor in ecological positioning: Singapore may evolve into a compliance asset management center, while Hong Kong assumes the role of a technology test site and an Asian capital hub.

For entrepreneurs, the most important thing is never to bet on which city, but to always maintain accurate perception and rapid response to policy trends, regulatory standards and market space. The world of Web3 is always mobile, and the real "safe haven" may not only be on the map, but also in the hearts of every team that makes clear decisions.