Cryptocurrency in Singapore - statistics & facts
Singapore plays a leading role in boosting cryptocurrency adoption in the Asia-Pacific region, with about 627 million U.S. dollars in funding for cryptocurrency companies in 2023, across 88 deals. The country's objective is to strengthen its position as an international financial hub, through digital innovation, as well as the development of fintech. The country benefits from a highly connected population, an excellent telecommunications network, and a skilled workforce, making it a favorable environment for crypto adoption. Additionally, its fiscal system attracts investors, who do not have to pay capital gains tax. The city-state's cryptocurrency ownership rate has increased in recent years, with bitcoin leading the way in adoption.
However, the government has expressed reluctance towards retail investors and has prohibited cryptocurrency companies from advertising directly to individuals. Although Singapore has ambitions to become a global cryptocurrency hub, it has been cautious about these digital assets due to their volatile and speculative nature.
Cryptocurrency companies and regulations in Singapore
In 2023, the blockchain and web3 companies accounted for the largest share of fintech companies in Singapore, behind digital payments. As part of its strategy to develop the sector, the government has focused on regulating and attracting players in the crypto environment. Indeed, the Monetary Authority of Singapore (MAS) has taken a proactive approach to develop cryptocurrency-related activities, implementing regulations to maintain control over the industry. As of January 2024, MAS had authorized 19 cryptocurrency service providers, 17 of which hold a major payment institution license and two of which hold a standard payment institution license. These include local companies such as Crypto.com, Coinhako, and StraitsX.However, the government has expressed reluctance towards retail investors and has prohibited cryptocurrency companies from advertising directly to individuals. Although Singapore has ambitions to become a global cryptocurrency hub, it has been cautious about these digital assets due to their volatile and speculative nature.
