Singapore has reportedly hit a record level of investments in the blockchain industry, securing almost $4B worth of FinTech deals in 2021.
While other regions in Southeast Asia have strict regulations on cryptocurrencies, Singapore has been at the forefront of embracing blockchain technology and implementing digital assets into the industry.
Even though Singapore has been hit with some regulatory measures on cryptocurrencies, it is safe to assume that the country won’t be affected that much due to the amount of blockchain and crypto-related investments flowing in.
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According to the report by KPMG, investments in Singapore’s FinTech industry went up by 37%, reaching an all-time high of $3.94 billion by the end of 2021. Not only that, $1.48B of the investments came from digital asset and crypto investment firms.
The surge of crypto-related investments in 2021 compared to 2020 was significantly larger. Based on the analysis paper, the crypto industry brought in almost $110M in 2020, meaning that 2021 had over 13 times more investments from blockchain projects.
While Singapore has not been struggling in the crypto industry, KPMG’s Pulse of Fintech analysis suggests the surge of investments was done in order to ramp up the capital market and attract blockchain startups in a prosperous environment.
KPMG International Global Fintech Leader Anton Ruddenklau chimed with his take on the increasing investments into Singapore’s blockchain industry, stating:
"Cryptocurrencies and blockchain are expected to remain very hot areas of investment in 2022, with more crypto firms looking to regulators to provide clear guidance on activities in order to help foster and develop the space."