Like Freedom City, Asylum was founded by Puritans who were seeking independence from the Church of England by starting anew in the New World. Bloody conclict with the native tribes paved the foundation of thie settlement and a rigid social order was immediately struck.
Since the settlement was inland, it was especially vulnerable to attack from native tribes. The settlements leaders saw fit to ally with Spanish Colonists and by the late 1600s the town saw home to culture that mixed the Spanish Inquisition with Puritan Orthidoxy. This period was marked by withchunts lead my masked Inquisitors that terrorized any who were suspected to have sorcerous powers.
As a results, the city's only paranormally gifted individuals fled the settlement for Freedom City, adding to its potential for superhuman activity while deplenishing the possibility that anything miraculous would everhappen in Asylum.
It is worth noting, however, that some historians believe that the Asylum Inquitors, as the masked witch-hunters were called, may have been metahuman themselves.