Crypto

Singapore, Former ‘Asian Tiger’ Pounce Differently at Crypto

02/07/2023
Bitcoin Ethereum News
  • Singapore was among the four ‘Asian Tigers’ of the global economy, along with Hong Kong, Taiwan, and South Korea. 
  • Crypto investment was tenfold in 2021 versus 2020. 
  • Risk disclaimer in crypto adverts and educating investors in crypto is the way to go. 

Singapore has been roaring among the four ‘Asian Tigers’ of the global economy from the 1960s to the 1990s. But as the economy slowly deviates towards crypto, the country’s approach toward its complexity is equally convoluted. 

Recent times have not been good for the country, as multiple blows of massive crypto scandals hit Singapore. Terra Ecosystem collapse impacted the most as the company was registered there. Three Arrow Capital also had to file for bankruptcy pulling Voyager Digital into the abyss. 

Cautiously trading the Crypto Jungle

Before the current situation in the industry, Singapore was very active in the arena. Studies show that in 2021 due to the bullish market, investments multiplied by 10 compared to $1.48 billion in 2020. This figure represented half of Asia Pacific’s total that year. After WW2 and the Cold War, Singapore, Hong Kong, Taiwan, and South Korea became the four ‘Asian Tigers’ of the global economy. 

They became a spot for swift industrialization, coupled with high economic growth, portraying a model for the developing countries en route to securing a seat among the developed nations. 

Between 1976 and 2022, Singapore’s GDP had an average of 6.26%, staring into the eyes of developed economies of North America and North Western Europe. Now the country is among the fastest-growing crypto economies. 

Singapore and Crypto

By November 2021, the country was leading the race of crypto businesses, followed by the UK, Cayman Islands, Hong Kong & the US. In Q3 of 2022, statistics placed Singapore at the fifth most crypto-friendly county podium, right after Germany, Switzerland, Australia, and UAE. Ranking 13th for the crypto activities. 

Despite the feats the country has achieved, with everything going on in the industry, Singapore’s crypto ecosystem wishes for regulation for money laundering. Also, in the cards are possibilities of treating them as regular banks. The government is concerned about the risks of financial terrorism, money laundering, financial instability, and consumer protection. 

Source: Deloitte

The country strongly advocates anti-risk and anti-volatility. However, the regulations in the nations are similar to others, adding something extra. In October 2021, the Monetary Authority of Singapore (MAS) proposed certain rules regarding capital reserve requirements for stablecoin issuers. 

The country encourages stablecoins as a “credible medium of exchange in the digital asset ecosystem.” But from January 2022, anyone advertising their cryptocurrency must include a disclaimer highlighting the financial risks involved. It’s an attempt to limit transgression and provide a cornerstone for CBDCs and other stablecoins. 

The MAS also recommends crypto firms check if their retail customers are knowledgeable enough to engage in the ecosystem. Basically, the country is not assuming that the traders, investors, and consumers are naive, instead counting on their high potential. Moreover, if people know that crypto is a complex ecosystem, they will figure out the risks involved before investing, thus making a calculated investment. 

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Source: https://www.thecoinrepublic.com/2023/02/06/singapore-former-asian-tiger-pounce-differently-at-crypto/