Singapore has claimed the top spot in global crypto adoption, outperforming the United States, UAE, and Hong Kong, as confirmed by a recent study conducted by Henley Global, a consulting firm.
This Asian nation has secured the highest position on the crypto adoption scale, thanks to its tax-friendly policies and transparent regulatory framework within the realm of digital assets.
A section of the Henley report stated,
“Singapore is at the forefront in establishing a financial, business, and regulatory environment that promotes the adoption of cryptocurrencies, supported by its accommodating banking system, substantial investments, comprehensive regulatory measures like the Payment Services Act, regulatory sandboxes, and compliance with international standards.”
The Evolution of Crypto in Singapore
According to a report from early 2024 by the Independent Reserve exchange, 40% of investors in Singapore are involved in cryptocurrencies. Moreover, the report indicated that over half of the country’s population anticipates cryptocurrencies becoming mainstream.
However, Singapore’s impressive crypto infrastructure and regulatory system were thoroughly tested and refined during the 2022 crypto downturn.
As reported by Bloomberg, the bear market, which commenced with the collapse of Tera Luna based in Singapore and culminated in the FTX collapse, impacted even entities associated with the state.
In response, the Monetary Authority of Singapore, the regulatory body, has adopted a proactive and cautious strategy to strike a balance between protecting consumers and fostering innovation.
Presently, close to 30 companies have obtained licenses from the regulatory authority, including prominent names like Coinbase, Ripple, OKX, and Revolut.
With the upcoming administration in support of cryptocurrencies and the prevalent positive sentiment within the industry, Singapore’s digital asset sector stands to gain even more traction.