According to the KPMG Pulse of Fintech report, Singapore experienced a tenfold increase in cryptocurrency-related investments last year to $ 1.48 billion, up from $ 110 million in 2020.
According to the study, the city-state has long been recognized as a hub for cryptocurrency, with more than $ 1.48 billion invested in the past year alone.
KPMG notes that this increase is partly due to the government’s efforts to stimulate the capital market, such as creating the basis for a Special Purpose Acquisition Company (SPAC) listing to position the country as a preferred place for fast-growing companies and unicorns to go public. .
This year, regulators are stepping up their efforts to regulate speculative digital assets. While the authorities introduce clear rules, KPMG expects the crypto investment in Singapore to remain strong this year.
As reported by Cointelegraph, in early January, the central bank ordered crypto companies to stop advertising their services to the public. In addition, the majority of applicants failed to complete the licensing process to obtain permits to operate a regulated cryptocurrency business in Singapore.
According to a KPMG report, most investments in cryptocurrency and blockchain last year were focused on software and underlying infrastructure instead of services. The emerging sector accounts for a third of Singapore’s total investment in fintech, which rose to $ 3.94 billion last year, according to KPMG.
KPMG also highlighted that fintech investments in the Asia-Pacific 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, risk financing increased to $ 19.6 billion from $ 11.5 billion in 2020.