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.
According to the study, the city-state has long been recognized as a hub of cryptocurrency activity, with an investment of more than $1.48 billion completed in the past year alone.
KPMG suggests the increase 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 place of choice where fast-growing companies and unicorns can go public. .
This year, regulators are stepping up their efforts to regulate speculative digital assets. Despite authorities imposing yet more regulations, KPMG forecasts that Singapore’s crypto investment will remain strong this year.
As Cointelegraph reported, the central bank ordered crypto companies to stop advertising their services to the general public in early January. Furthermore, most of the applicants have not passed the licensing procedure to operate a regulated cryptocurrency business in Singapore.
According to 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 accounted for a third of total fintech investment in Singapore, which rose to $3.94 billion last year according to KPMG.
KPMG also highlighted that Asia-Pacific fintech investment reached a record $27.5 billion in 2021, with total funding exceeding $17.4 billion in the second half alone (compared to $11, 5 billion in 2020). In 2021, venture capital funding increased to $19.6 billion from $11.5 billion in 2020.
This post Singapore Saw a 13x Increase in Cryptocurrency Investments in 2021: KPMG
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