In 2021, investments in the cryptocurrency and blockchain sector in Singapore increased more than 10 times, setting a new record. Such data strengthens the status of the city-state as a crypto hub, even though it is still afraid of speculative digital assets.
According to the KPMG Pulse of Fintech report published on Tuesday, less than a hundred deals worth $1.48 billion were concluded last year. This significantly exceeds the results of 2020 in the amount of $ 110 million.
Investors expect cryptocurrency investment in Singapore to remain high this year, even as authorities step up oversight.
So, one of the many steps that caused concern in the industry was the government ban on crypto companies to refrain from advertising their services to the public. Already in January 2022, Singapore shut down crypto machines installed in public places.
In general, the licensing process for permits to conduct a regulated cryptocurrency business in Singapore shows that most applicants intend to continue the development of the crypto business and would like more favorable conditions from the financial regulator.
"Cryptocurrencies and blockchain are expected to remain very attractive areas for investment in 2022, and more and more crypto firms are turning to regulators for clear guidance on activities to promote the development and development of this space," said Singapore-based financial technology analyst Anton Ruddenklau.
According to the report, most of the transactions with cryptocurrency and blockchain last year were aimed at software and basic infrastructure, not services. According to the report, this sector accounts for a third of total investments in Singapore's fintech industry, which reached a five-year high of $3.94 billion.
Despite some bans by the authorities, Singapore is still leading the list of countries attractive to investors in tokens. Only in the third quarter of 2021, Singapore moves from third place to first. In terms of the share of the population owning cryptocurrencies, Singapore is in second place in the world.
Of course, the drop in quotes can change the view of the authorities on the use of blockchain technology, but so far this small country still attracts many large crypto investors with both the tax regime and financial services.