Crypto Hubs: Who’s Winning?! 💰

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Kazakhstan, the Maldives, and Pakistan, bless their cotton socks, have decided they fancy a crack at becoming crypto hubs. One can only assume they’ve got a cunning plan. A plan involving, presumably, digital economies. One shudders to think. 🌍🤔

Now, historically speaking, when you thought “crypto,” you didn’t exactly leap to Kazakhstan. Though, to be fair, they had a brief fling with Bitcoin miners after China said, “No thank you, we’re full” to all that mining malarkey. It was a fleeting moment of glory, like a shooting star made of digital hash. ✨

Meanwhile, the usual suspects, the established financial centers, are having a right royal rumble to become the world’s top crypto spot. It’s all about finding that delicate balance of regulation, talent, capital, and the all-important tea-making facilities. ☕ Balance is key, you see. Like a penguin on a tightrope. 🐧

So, let’s have a gander at how five of them are throwing their hats into the crypto ring. Prepare for mild excitement. 🤹

Singapore: The Crypto Hub with a Nanny 🦁

Singapore, that bastion of fiscal prudence, has always been a financial hub. Boasting a AAA credit rating (oo-er!), low corporate tax rates (fancy!), and regulations that practically roll out the red carpet for businesses. With crypto waltzing onto the scene, the Lion City is roaring ahead in the crypto hub stakes. Or at least, purring quietly. 🤫

Singapore was quick off the mark with crypto regulations. Its Payment Services Act (PSA) of 2019, like a well-meaning but slightly overbearing parent, set out one of Asia’s first comprehensive legal frameworks for crypto shenanigans. 🎉

The PSA, in its infinite wisdom, uses the term “digital payment token” (DPT) to describe anything that can be transferred, stored, or traded electronically. Like crypto. Because “crypto” was far too simple, obviously. 🤦

At the time of writing, there are 33 DPT service providers licensed by the Monetary Authority of Singapore (MAS), which sounds terribly important. Casper Johansen, co-founder of Spartan Group, said license approvals have been moving at a leisurely pace. Giving the likes of Dubai room to catch up. Like a tortoise racing a particularly ambitious hare. 🐢

“Singapore is more of an institutional financial hub than a retail financial hub,” Johansen said, hinting at the city-state’s rather stringent rules on crypto marketing to retail investors. No fun allowed, it seems. 🚫

Singapore Skyline

“The ban on marketing to retail has not affected Singapore’s position as a global crypto hub. Crypto firms set up in Singapore for the low and transparent taxes, strong regulatory framework and rule of law, world-class professional services, ease of living and global connectivity,” Johansen added. Which is a relief, really. 😌

But cracks have emerged, particularly around immigration and hiring. In late 2024, concerns arose when the CEO of blockchain analytics firm Nansen, Alex Svanevik, found himself denied permanent residency. The government is prioritizing local hiring amid growing political sensitivity over foreign labor. Because nothing says “global hub” like closing the doors, eh? 🚪

Singapore Immigration

UAE: Rolling Out the Red Carpet (and Crypto) 🇦🇪

Unlike some of the other crypto wannabes, Dubai has a dedicated digital asset regulator, the Virtual Assets Regulatory Authority (VARA). Which sounds like something out of a particularly optimistic sci-fi novel. 🚀

Its licensing regime provides clear guidelines, even for NFT platforms. Guidelines the EU is still scratching its head over. VARA’s clarity is appealing to companies fed up with regulatory uncertainty elsewhere. It’s like a beacon of hope in a sea of legal fog. 🚢

Binance, that borderless exchange with no official head office (bit of a nomad, really), has been growing its ties to the UAE. Richard Teng, former CEO of free zone Abu Dhabi Global Market, took over as the CEO of Binance, and has hinted that UAE is a strong candidate for the exchange’s headquarters, though a decision hasn’t been made yet. The suspense is killing us! 😵

Dubai Skyline

The UAE also dangles its own carrots, such as no personal income tax and free zones like the Dubai Multi Commodities Centre (DMCC) and Dubai International Financial Centre (DIFC) offering 0% corporate tax advantages and 100% foreign ownership. It’s like a tax haven, but with better weather. ☀️

Crypto firms have reported easier access to banking services in Dubai, which is an improvement over the challenges companies say they’ve faced in the US under “Operation Chokepoint 2.0.” One suspects a collective sigh of relief could be heard across the crypto-sphere. 😌

Hong Kong: Making a Crypto Push (with Retail Access and Staking ETFs) 🇭🇰

Hong Kong has long been a financial gateway to mainland China, where crypto is about as welcome as a penguin at a desert convention. 🐧🏜️

Previously, the city had a voluntary licensing regime, when only OSL and HashKey were licensed to serve institutions and professional investors. In Hong Kong, professional investors are legally defined as those with portfolios worth at least 8 million Hong Kong dollars (about $1 million). Which, let’s face it, rules most of us out. 😢

It was later updated to the mandatory regime, launched in 2023, which opened the doors to retail. A monumental shift, akin to finally letting the common folk into the VIP lounge. 🍾

The shift to mandatory licensing marked a turning point. OSL and HashKey became the first exchanges authorized to serve retail investors, while firms like Bybit and OKX withdrew their applications and exited the market. As of now, 10 platforms are licensed, while 15 have either withdrawn or been rejected. It’s like a crypto version of musical chairs. 🪑🎶

Hong Kong Skyline

Hong Kong has made further strides with the listing of Bitcoin and Ether (ETH) ETFs, and recently approved staking within Ether ETFs, which is not yet permitted in the US. It has also introduced stablecoin sandboxes under the supervision of the Hong Kong Monetary Authority to trial approved digital assets in a controlled environment. A sandbox for stablecoins. One wonders if they have tiny buckets and spades. 🏖️

“Sandboxes are an experiment, so too are staking ETFs,” said Kelvin Koh, a Spartan Group co-founder. “The key point is that these experiments are happening in Hong Kong.” One can only applaud the spirit of experimentation. Even if one has no idea what staking ETFs actually are. 🤷

Hong Kong recently released its ASPIRe roadmap in February 2025, which aims to foster blockchain innovation and fill regulatory gaps to set the city up as a global crypto hub. Because every good crypto hub needs a roadmap. Preferably one that doesn’t lead to a dead end. 🗺️

Hong Kong ASPIRe Roadmap

Trump 2.0 Dreams of Crypto Hub 🇺🇸

US crypto firms were stuck in regulatory gridlock under the Securities and Exchange Commission formerly led by Gary Gensler, whose aggressive “regulation by enforcement” strategy triggered years-long legal battles. It was a dark time, full of legal jargon and existential angst. 😩

That changed with the inauguration of President Donald Trump, who has embraced a crypto-friendly stance. The SEC has since dropped multiple high-profile cases and investigations, including those against Coinbase, Uniswap and Consensys, signaling a shifting regulatory climate that is prepared to welcome back crypto to US soil. Like a prodigal son returning home, but with more blockchain. 🏡

Binance.US resumed US dollar services in February after 18 months of restriction that followed enforcement action from the Commodity Futures Trading Commission, a $2.7-billion settlement and a four-month prison sentence for ex-Binance CEO Changpeng Zhao. It’s a rollercoaster of legal twists and turns, isn’t it? 🎢

Rival exchange OKX reentered the US market in April 2025 after a $500-million settlement with the Department of Justice. Also in April, Nexo announced — during an event with Trump’s son in attendance — that it rekindled its American dream after scrapping it in 2022. Seems everyone wants a piece of the American crypto pie. 🥧

Traditional finance is warming up, with institutional investments flooding into Bitcoin and Ether spot ETFs, provided by some of the world’s largest asset managers, including the $11.5-trillion giant BlackRock. The old guard and the new kids on the block are finally holding hands and singing kumbaya. 🤝

The financial love affair goes both ways as crypto firms are also increasingly open to integrating into the existing US infrastructure. It’s like a carefully choreographed dance, with each partner trying not to step on the other’s toes. 💃🕺

Galaxy Digital listed on Nasdaq on May 16, Circle is considering another IPO attempt, and Hong Kong’s blockchain unicorn Animoca Brands is now eyeing a New York listing, citing Trump’s stance on crypto. Because if you’re going to dream big, you might as well dream in dollars. 💰

New York City Skyline

The world’s largest financial center, New York City, is making its own move. Mayor Eric Adams said on May 12 that the Big Apple is “open for business” with crypto companies. One can only imagine the queue forming outside City Hall. 🍎

UK: Crypto Hub Push Goes Quiet, But London’s Still Calling 🇬🇧

In 2023, then-Prime Minister Rishi Sunak launched a bold vision to make the UK a global crypto hub, pushing for stablecoins to be recognized as regulated payment instruments and outlining a broader framework to integrate crypto into the country’s financial system. It was a time of great excitement and bold pronouncements. 🗣️

That momentum translated into real movement: In April 2025, the UK Treasury released near-final legislation aimed at bringing crypto assets — like trading platforms, stablecoins and staking services — within the country’s regulatory perimeter. One can only hope they remember to dot the i’s and cross the t’s. ✍️

The Financial Conduct Authority (FCA) is now consulting on how to regulate intermediaries, lending and other core parts of the ecosystem, signaling continued regulatory development. Because nothing says “progress” like endless consultations. 💬

But while the machinery of regulation keeps turning, the political will has cooled. As Arvin Abraham, partner at law firm Goodwin’s private equity group, told CryptoMoon, crypto was once central to Sunak’s competitiveness agenda, but under the current Labour government, that focus has faded. It’s like a souffle that’s lost its puff. 😔

The new Financial Services Growth and Competitiveness Strategy, spearheaded by Chancellor Rachel Reeves, highlights fintech as a priority without a focus solely on crypto. Which is a bit like saying you’re interested in cars, but not particularly in the engine. 🚗

“The UK does not feel like it’s prioritizing it as much as it was a few years ago,” Abraham said. One suspects a collective sigh of disappointment could be heard across the crypto community. 😮‍💨

London Skyline

Abraham added the UK remains “one of the best places to set up a new startup,” especially for early-stage capital raising. Which is a relief, really. 😅

He points to generous tax incentives for angel investors and the unique convergence of finance and startups in London, calling it “probably one of the best cities in the world for fintech-type businesses.” One can only agree that London has its charms. Even if it does rain a lot. ☔

In that sense, even without headline-grabbing crypto policy, the UK’s structural appeal still draws Web3 firms — just now with a quieter backdrop. A bit like a party that’s moved indoors because of the weather. 🎉

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2025-05-19 18:11