In the centralised exchange segment, Singapore leads the way with 22 headquartered exchanges in the territory. Hong Kong and the US are tied second with 14. Yet only seven of those 22 are incorporated in Singapore. Why?
Singapore based; Off-Shore Registered **
Hoptrail data indicates that in total 42 of the top 130 exchanges are domiciled offshore. That increases to 51 if we include Luxembourg, Liechtenstein, Malta and Gibraltar. This does prompt a separate discussion about regulatory strength - how should we assess a license obtained in the Bahamas versus one in Singapore? But that is a debate for another time.
**This data suggests two things: (1) that the licensing process is slow and lengthy, and (2) there is a two-speed system in play for exchanges: they headquarter there to access capital and talent, but domicile off-shore to avoid oversight.
This is unique. Of course, this will evolve over time as MAS works through its backlog. But for now, some of the world’s best regulated exchanges are up against those without any licenses at all.