Singapore Ranks Second for Crypto Industry Despite Challenges
Singapore has gained a reputation as one of the most efficient and well-regulated city-states in the world, scoring highest overall for the three measures it could control in the CoinDesk ranking of US crypto hubs. These measures included the regulatory structure and digital infrastructure of the country, which are considered part of the enablers category, as well as the ease of doing business. Its ranking was despite middling scores for quality of life and per-capita crypto jobs, companies and events, among other factors.
Despite its challenges, Singapore still hosts some of the biggest brands in the crypto industry, such as Binance, Coinbase and Crypto.com. The country has been successful at attracting crypto companies due to its strong regulatory framework and predictable business environment. However, failures of homegrown companies like Terraform Labs and Three Arrows Capital have impacted the crypto ecosystem, leaving the community to recover and focus on the future.
Singapore has been noted for having the highest rating in the world for digital infrastructure, according to the Tufts Fletcher Digital Evolution Index, making it a strong contender for a crypto hub. Additionally, it has the second-highest ranking in the World Bank’s Ease of Doing Business index, making it the most competitive fintech hub in the Asia Pacific region. Singapore is also a regulatory leader for crypto, having passed the Payment Services License Act in 2019, which established a proper digital-assets licensing framework.
Pamela Lee, head of APAC sales at Talos, a developer of institutional-grade technology for digital-asset trading, said that many companies were rushing to Singapore to apply for the license at the time because it was the first regulator in the region with this framework. Singapore has also been a popular destination for crypto influencers and affluent individuals due to its lack of capital gains tax.
Despite its many advantages, Singapore has fallen to the current crypto winter, with its once well-established stereotypically brash strain of crypto celebrity culture and lifestyle taking a hit. Previously, the wealthy Sentosa Island served as the center for crypto meetups, conferences, and events in Singapore. However, many of the influential players have since moved to other places.
While Singapore continues to face challenges in the crypto industry, it remains a contender for a strong crypto hub, thanks to its efficient and well-regulated government, strong digital infrastructure, and institutional fintech know-how. The country is likely to be an attractive destination for crypto companies and affluent individuals moving forward.