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Asia's two financial powerhouses, Hong Kong and Singapore, are among the most sought-after hubs in the digital asset world. With clear regulatory frameworks, robust banking infrastructure and ecosystems open to international investors, both centres offer serious opportunities for crypto ventures. In this guide we compare licensing types, company setup steps, tax advantages and the key differences between the two jurisdictions, based on current official sources.
Hong Kong and Singapore sit at the heart of capital markets in the Asia-Pacific region. Both centres offer a predictable legal system rooted in English common law, low and competitive tax rates, advanced banking networks and structures open to international investors. For crypto and blockchain ventures, the real differentiator is regulatory clarity: both jurisdictions have tied digital asset activities to specific licensing regimes, strengthening investor confidence and corporate reputation alike.
Hong Kong serves as a direct gateway to Mainland China and the wider Asian market, while Singapore positions itself as Southeast Asia's fintech hub. Choosing the right centre for a crypto venture depends on the target market, the product type (exchange, custody, payments, token issuance) and the growth strategy.
In Hong Kong, virtual asset activities are regulated by the Securities and Futures Commission (SFC). The VATP (Virtual Asset Trading Platform) licensing regime, established for virtual asset trading platforms, is mandatory for businesses offering exchange services. The SFC operates on a "same activity, same risk, same regulation" principle and places investor protection at its core.
Under the SFC's VATP Licensing Handbook, platforms are expected to ensure secure custody of client assets, strong anti-money-laundering (AML/CFT) procedures, cybersecurity standards and a qualified management team. Throughout 2025–2026, the SFC has continued to advance its "ASPIRe" roadmap and new frameworks for virtual asset derivatives and perpetual contracts.
All platforms offering virtual asset trading services to the public in Hong Kong are subject to the VATP licence. Additional activities such as custody, brokerage and fund management may also engage the SFC's relevant licence types (for example Type 1 and Type 9).
In Singapore, the regulator for crypto activities is the Monetary Authority of Singapore (MAS). The core legal framework is the Payment Services Act (PS Act), which came into force on 28 January 2020. Under this act, MAS regulates seven types of payment services; the critical category for crypto businesses is the Digital Payment Token (DPT) service.
Under the PS Act, businesses may apply for different licence categories according to their transaction volume (for example Standard Payment Institution and Major Payment Institution). In addition, on 30 May 2025 MAS published guidelines on the Digital Token Service Provider (DTSP) licensing framework under the Financial Services and Markets Act (FSMA), bringing digital token providers serving overseas markets into scope.
Companies providing DPT services must fully comply with AML/CFT rules, protect client assets and observe MAS's marketing restrictions towards retail investors. MAS clearly expects that digital payment token services should not be aggressively promoted to the general public.
The tax regime is one of the decisive factors in choosing a hub. The table below summarises the core corporate tax structure of the two centres.
| Criteria | Hong Kong | Singapore |
|---|---|---|
| Corporate Tax | Two-tiered: 8.25% on first HKD 2 million of profits; 16.5% above | 17% (effective rate may fall with new start-up exemption schemes) |
| Capital Gains Tax | None | None |
| Crypto Regulator | SFC (VATP regime) | MAS (PS Act – DPT / FSMA – DTSP) |
| Tax System | Territorial | Territorial + foreign income exemptions |
In both centres, setting up a crypto-focused company combines standard company registration with a licensing process. The general flow is as follows:
For ventures aiming to scale internationally and valuing institutional investors and banking relationships, both centres provide a strong foundation. Choosing the right centre is decisive in terms of long-term cost and reputation.
Hong Kong stands out with access to China and Northeast Asia and its strong capital market infrastructure. Singapore offers advantages in terms of its fintech ecosystem, legal stability and gateway to Southeast Asia. The decision should be shaped by your target market, product model and regulatory preferences. A proper feasibility and advisory process clarifies this choice.
For end-to-end support in setting up a crypto company, you can get in touch with us or quickly request a free quote.
Platforms offering virtual asset trading to the public fall under the SFC's VATP (Virtual Asset Trading Platform) licensing regime. Activities such as custody, brokerage and fund management may require additional SFC licences.
Crypto businesses apply for the Digital Payment Token (DPT) service licence under the Payment Services Act. Since 30 May 2025, the DTSP framework under the FSMA also covers providers serving overseas markets.
Hong Kong applies a two-tiered system: 8.25% on the first HKD 2 million of profits and 16.5% above. Singapore's standard corporate tax is 17%, and start-up exemption schemes may lower the effective rate. Rates may change; verify with official sources.
Neither Hong Kong nor Singapore levies a general capital gains tax. However, income of a trading nature may be subject to corporate tax; a case-by-case professional assessment is important.
Hong Kong is advantageous for access to China and Northeast Asia, while Singapore excels in its fintech ecosystem and gateway to Southeast Asia. The right choice depends on your target market, product model and regulatory preferences.
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