KPMG projects that Singapore’s cryptocurrency investment will remain significantly strong this year with growing regulatory scrutiny. Singapore has seen a tenfold increase in cryptocurrency-related investments in 2021 worth $1.48 billion, up from $110 million in 2020, based on KPMG’s Pulse of Fintech report.
Based on the study, the city-state has mainly been recognized as a centre of crypto activity; with more than $1.48 billion in investment completed in the past year alone.
KPMG states that the increase is in part due to government efforts to stimulate the capital market, like establishing a special purpose acquisition company (SPAC) listing infrastructure to position the nation as a choice destination where the fast-growing companies and unicorns can go public.
In 2022, regulators are increasing their efforts to regulate speculative digital assets. Even as the authorities impose more regulation, KPMG projects that Singapore’s cryptocurrency investment will remain significantly strong this year.
As reported previously, the central bank ordered crypto companies to stop advertising their services to the general public in January. Moreover, most of the applicants have failed to pass the licensing process for the licenses and permits to operate a regulated crypto business in Singapore.
Buy Bitcoin NowFintech In Singapore Is Thriving
Based on the KPMG report, most of the crypto and blockchain investments in 2021 were focused on software; and underlying network rather than services. The budding industry made up 33% of total fintech investment in Singapore. Notably, it surged to $3.94 billion in the past year as per KPMG.
KPMG also said that Asia-Pacific’s fintech investing reached a record high of $27.5 billion in 2021, with total funding exceeding $17.4 billion in the second half alone, compared to $11.5 billion in 2020. In 2021, venture capital funding rose to $19.6 billion from $11.5 billion in 2020. These figures show that the crypto and blockchain sectors are thriving in Singapore.
