Crypto Investments in Singapore Surged by 13x in 2021
Crypto is big in Singapore, and a new report from KPMG reveals just how big it is. According to the KPMG Pulse of Fintech report, crypto-related investments in Singapore grew from $110 million in 2020 to $1.48 billion in 2021.
This further cements the status of Singapore as one of the centers of cryptocurrency activities. The $1.48 billion came from 82 deals.
Singapore’s Crypto Investments Over $1 billion
The rise in crypto investments in the country comes amidst government efforts. Singapore has emerged as one of the most crypto-friendly and investor-friendly countries in recent years.
Last year, the government created a framework for listing special-purpose acquisition companies (SPAC). This makes Singapore the country of choice for startups wishing to become public.
Although there are regulations for crypto already, there would likely be more regulations this year. Last month, Singapore banned cryptocurrency firms from advertising in public.
Its licensing procedure for cryptocurrency businesses is also quite strict, with most companies, including Binance, failing to meet the standards.
But KPMG doesn’t expect that to affect crypto investments in the country. On the contrary, it predicts that crypto investments will increase this year.
Like Crypto, Like Fintech
According to the report, the crypto sector made up one-third of the $3.94 billion invested in fintech. Most money invested in crypto went towards the underlying infrastructure and software supporting blockchain technology.
It’s not only Singapore that had a good year of fintech investments. The Asia-Pacific fintech space received $27.5 billion worth of investments in 2021.
Most of these investments come from Venture capital firms. VCs committed $19.6 billion to funding fintech projects in 2021, well above the $11.5 billion in 2020.
The massive investment in fintech companies last year has contributed to the optimism for what the future holds.
Most sectors, including the crypto space, remain well-positioned for further advancement.
In its forecasts for 2022, KPMG predicted that more traditional financial institutions would start offering embedded services just as regulatory scrutiny will focus more on these offerings.