With increased regulatory scrutiny, KPMG predicts that Singapore’s crypto investment will stay high this year.
According to KPMG’s Pulse of Fintech report, Singapore saw a tenfold growth in crypto-related investments totalling $1.48 billion last year, up from $110 million in 2020.
According to the research, the city-state has long been known as a hotbed of cryptocurrency activity, with over $1.48 billion in investment completed just last year.
The increase, according to KPMG, is due in part to government efforts to stimulate the capital market, such as the establishment of a special-purpose acquisition company (SPAC) listing framework to position the country as a preferred destination for fast-growing companies and unicorns seeking to go public.
Regulators are stepping up efforts to regulate speculative digital assets this year. Even as authorities tighten regulations, KPMG predicts that crypto investment in Singapore would remain high this year.
The central bank ordered cryptocurrency firms to stop advertising their services to the general public in early January, according to Bitcoinsupports. Furthermore, the majority of applicants for permission to operate a regulated bitcoin firm in Singapore have failed to pass the licencing process.
The majority of bitcoin and blockchain investments last year, according to the KPMG research, were focused on software and underlying infrastructure rather than services. According to KPMG, the embryonic sector accounted for a third of total fintech investment in Singapore, which totaled $3.94 billion last year.
According to KPMG, fintech investment in Asia-Pacific reached a new 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). Venture capital funding reached $19.6 billion in 2021, up from $11.5 billion in 2020.