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Crypto market has attracted several investors and traders with its tremendous potential and notable price surges. Following the potential of cryptocurrencies and decentralized finance, Singapore seeks to become the world’s crypto hub. REcently, KPMG has shared its Pulse of Fintech report. As per the report, the country has witnessed a tenfold increment in cryptocurrency investment last year of $1.48. Notably, the figure is up by more than $110 million in 2020 as per data from KPMG.
Singapore – The center of cryptocurrency
According to several experts in the cryptocurrency ecosystem, Singapore has long been recognized as a center of crypto assets activity. Over the past year, the state has achieved more than $1.48 billion worth investments in cryptos.
Following the scenario, KPMG suggests that the increments in investments is due in part to government efforts. Government should take measures to stimulate the capital market like establishing a special-purpose acquisitions company, listing frameworks to position the nation as a choice location where fast-growing firms and unicorns can go public.
It is noteworthy that this year financial authorities in Singapore are ramping up their efforts to regulate the speculative market. Although authorities are imposing even regulation, it is forecasted that the region’s crypto investment will remain strong.
Stringent regulations and essential investment
According to some previous considerable reports, the central bank of Singapore ordered crypto firms to halt advertising their services to the general public. It is notable that the majority of the applicants failed to pass the licensing procedure for permits to operate a regulated crypto business in the nation.
According to the report shared by KPMG, following the investments during the last year, it is observed that the majority of investments in crypto and its underlying technology were focused on software and underlying infrastructure. Notably, the investments were not focused on the services of the projects.
Indeed, the nascent industry has made a third of total FinTech investments in the nation. (Such investments have surged to $3.94 billion last year)
Besides, the report by KPMG highlighted that Asia-Pacific’s FinTech investments hit a new record high of $27.5 billion last year. Total funding amount surpassed the benchmark level of $17.4 billion in the second half alone.
