Singapore has rapidly become the capital of Asia when it comes to cryptocurrency and blockchain technology, and many people are wondering how and why this transformation took place.
There are five main reasons why Singapore has become such an attractive destination for crypto startups and investors in this new technological age, from governmental acceptance of the emerging technologies to the locals’ increasing adoption of cryptocurrency.
- Healthy Economy
The Ministry of Trade and Industry (MTI) upgraded Singapore’s GDP growth forecast for 2021 to “6.0 to 7.0 percent”, from “4.0 to 6.0 percent”. The Singapore economy expanded by 14.7 percent on a year-on-year basis in the second quarter of 2021, faster than the 1.5 percent growth in the previous quarter.
According to MTI, Singapore’s economy will continue to grow in 2021. The country’s wealth has grown at a rate higher than any other Southeast Asian nation and continues to outpace its neighbors. Such wealth will enable affluent citizens to keep fueling investment into cryptocurrencies, which could help drive up prices further.
- Regulatory Environment
As other Asian cities like Hong Kong remain staunch on cryptocurrency-related legislations, Singapore’s welcoming stance attracts digital asset groups. The Monetary Authority of Singapore (MAS) has been an active promoter of fintech businesses, attracting investments and entrepreneurs to contribute to the country’s development. Hence cryptocurrency has found a firm footing in Singapore’s free market economy.
MAS first outlined its position on cryptocurrencies in 2013, declaring that they were neither legal nor illegal. Then, in 2017, it introduced a set of new rules for ICOs and cryptocurrency exchanges—though enforcement has been strict. In March 2018, MAS said it would impose new restrictions on cryptocurrency exchanges to prevent money laundering and terrorism financing—including mandating KYC procedures for cryptocurrency exchange users and restrictions on foreign exchange trading between local currency and cryptocurrencies.
The reason why Singapore is a great place to do business in and around cryptocurrency and blockchain has everything to do with geography. The city-state, located at the southern tip of Malaysia, shares its border with Indonesia, Thailand, Brunei, Cambodia and even Vietnam. That means you can reach nearly every corner of Southeast Asia by just stepping outside your office. What’s more, Southeast Asian countries are increasingly forming cooperative free trade agreements that allow for visa-free travel between member states – meaning it’s easy for businesses to bring talent on board from other parts of Southeast Asia.
- Multilingualism and multiculturalism
Singapore’s multilingual and multicultural character attracts global talent, and it is home to top-notch universities like NUS and NTU that churn out software engineers and tech talent. English, Mandarin and Tamil are all widely spoken in Singapore which makes it easy for businesses to recruit talents from various language communities in Singapore and all over Asia. In addition, businesses can also tap into large talent pools by getting their messages out there on social media platforms like WeChat, Facebook or LinkedIn. As such, Singapore is fast becoming one of Asia’s biggest cryptocurrency hubs. These factors have led major digital currency exchanges like Coinbase and Binance to open offices here.
- Increasing adoption of cryptocurrency
Singaporeans are increasingly adopting crypto as an investment or payment method, according to new survey results released by Asia-Pacific cryptocurrency alternate Independent Reserve.
According to the survey results, 43% of those polled said they owned cryptocurrency, with 46% planning to buy digital property within the next year. Two-thirds, or 66%, of respondents between the ages of 26 and 45 said they owned cryptocurrencies.
These findings confirm that cryptocurrency adoption in Singapore has been steadily increasing. This adoption has primarily come from the younger generation of investors, the majority of whom are actively looking for new sources of income as well as ways to successfully capitalise on the generational wealth potential of Bitcoin and other cryptocurrencies. While cryptocurrency is mostly thought of as an investment at present, it will soon be widely accepted and used as a method of payment much like cash or credit cards in Singapore.
At UKISS, we believe that crypto and blockchain technology will dramatically impact our daily lives. From finance to logistics, from healthcare to insurance, and from supply chain management to energy markets – blockchain will revolutionize industries on a global scale. It’s a matter of when, not if, mass adoption will occur—and right now, Asian countries, especially Singapore, seem to be ahead in implementing innovative applications for blockchain tech. So if you’re looking for a country with an open mind, forward-thinking policymakers, and a booming cryptocurrency industry—look no further than Singapore.
UKISS also believes that every person deserves the peace of mind over their digital assets and personal data. Reinventing corporate data security technology for the consumer market, we envision making day-to-day data security accessible for everyone. We’re pioneering a next-generation hardware wallet that’s based on a user-centric technological design, can be easily integrated with various digital wallet platforms, and has expanded capabilities for other types of data security – all while putting complete control in the hands of the user.
About UKISS Technology
UKISS Technology is pioneering the next-generation cryptosecurity wallet that is simple, safe, and secure to use. Their technology has also been granted patents in most major markets including China, the United States, Europe, Asia, and India. Their clients include government ministries, leading medical healthcare providers based in the APAC region, and major FinTech players. Check out UKISS.io for more information