The Battle for Asia's Web3 Hub: Singapore Tightens Regulations, Hong Kong's Open Attitude Draws Follow

Recently, the Web3 landscape in Asia is undergoing subtle changes. The Monetary Authority of Singapore (MAS) has suddenly tightened its policies, while Hong Kong has shown a more open attitude. This contrast has sparked widespread discussion in the industry about the ownership of the Asian crypto center.

On May 30, MAS released a new digital payment directive (DTSP), requiring all institutions engaged in crypto-related businesses to obtain licenses by the end of June, or they must cease operations. This policy covers various areas including trading platforms, wallet service providers, DeFi protocols, and even opinion leaders publishing crypto research content. The industry's summary of MAS's regulatory features includes "no grace period," "full coverage," and "zero tolerance."

The most controversial aspect of the new regulations is the expansion of the definition of "business premises". Even working remotely in Singapore and serving overseas users is considered a regulatory subject, leaving many entrepreneurs feeling at a loss.

Although MAS subsequently released supplementary information in an attempt to clarify the scope of the policy, it did not substantively relax regulatory requirements. This clarification indicates that MAS is primarily targeting "foreign service providers" that pose potential cross-border money laundering risks, rather than completely banning the Web3 industry. However, this shift in policy still signals that Singapore's Web3 ecosystem is entering a period of compliance restructuring.

At the same time, Hong Kong is adopting a more flexible regulatory approach to embrace Web3. Since the release of relevant policy declarations in 2022, Hong Kong has implemented several core systems, including virtual asset trading platform licenses and stablecoin regulatory regulations. Currently, 10 virtual asset trading platforms have obtained licenses and are allowing retail investors to participate in trading.

In terms of product innovation, Hong Kong has also made significant progress. In April this year, the world's first tokenized money market ETF was approved and launched in Hong Kong, becoming the largest virtual asset ETF market in the Asia-Pacific region. At the end of May, the Hong Kong Special Administrative Region government officially issued the "Stablecoin Regulation", providing a regulatory framework for the issuance and use of stablecoins.

Hong Kong is also increasing its investment in capital attraction and entrepreneurial support. According to unofficial statistics, since 2022, over a thousand Web3 companies have established operations in Hong Kong, with Cyberport housing nearly 300 Web3 enterprises and raising a total of over 400 million HKD. The Hong Kong government has also provided various support measures, including tax incentives and talent landing subsidies.

However, viewing Hong Kong simply as a "new center" may be premature. Although Hong Kong shows a positive attitude, it still faces many challenges, such as uneven policy implementation and inadequate infrastructure. For entrepreneurs, choosing Hong Kong seems more like a "second-best choice" rather than the optimal solution.

In the long term, the roles of Singapore and Hong Kong may diverge: Singapore may become a compliance-focused asset management center, while Hong Kong may take on the role of a technology testing ground and an Asian capital hub.

For Web3 entrepreneurs, the key is not to bet on a specific city, but to maintain a keen insight into policy trends, regulatory changes, and market opportunities. In this ever-changing industry, a true "safe harbor" may not just exist in geographical locations, but also in the decision-making ability and adaptability of each team.