Singapore has seen a tenfold increase in crypto-related investments last year worth $1.48 billion, up from $110 million in 2020, according to KPMG’s Pulse of Fintech report.
As per the study, the city-state has long been recognized as a center of cryptocurrency activity, with over $1.48 billion in investment completed last year alone.
KPMG suggests that the increase is in part due to government efforts to stimulate the capital market, such as establishing a special-purpose acquisition company (SPAC) listing framework to position the country as a choice location where fast-growing firms and unicorns can go public.
This year, regulators are ramping up their efforts to regulate speculative digital assets. Even as authorities impose even more regulation, KPMG forecasts that Singapore’s crypto investment will remain strong this year.
As reported by Cointelegraph, the central bank ordered cryptocurrency firms to stop advertising their services to the general public in early January. Furthermore, most applicants have failed to pass the licensing procedure for permits to operate a regulated cryptocurrency business in Singapore.
Per the KPMG report, the majority of cryptocurrency and blockchain investments last year were focused on software and underlying infrastructure rather than services. The nascent sector made up a third of total fintech investment in Singapore, which rose to $3.94 billion last year as per KPMG.
KPMG also highlighted that Asia-Pacific’s fintech investing hit a record high of $27.5 billion in 2021, with total funding surpassing $17.4 billion in the second half alone (compared to $11.5 billion in 2020). In 2021, venture capital funding rose to $19.6 billion from $11.5 billion in 2020.