As the prices of Bitcoin and other crypto-currencies rally, Singapore stands to benefit from increased crypto investments.
Less than a decade ago, Bitcoin traded at less than US$1. Thanks to the efforts of various cryptocurrency-friendly nations around the world, the prices of most coins have now surpassed the 3000% increase mark.
Bitcoin’s value, for instance, has risen by more than nine million percentage points.
At the time of writing, you’d require about S$16,318 (US$11,997) to buy Bitcoin in Singapore. However, since most people find it difficult to raise this investment figure, exchanges allow you to purchase smaller units of Bitcoin for a fraction of the price.
Clearly, the city-state is proving to the world that it is committed to embracing digital currencies.
Now more than ever, crypto companies are flocking to Singapore and are establishing branches and head offices in the market. Some of the latest entrants include 1X, Matrixport and Binance.
How did Singapore become the global crypto hub?
The island nation consistently ranks among the best places to do business globally.
The Money Authority of Singapore (MAS) has created a conducive environment whereby players can experiment with various financial technologies. As a central financial regulator, the MAS is charged with the provision of statutes that govern the crypto and related space.
It has embraced cryptocurrency regulation and pursued ways to integrate Distributed Ledger Technology (DLT) into the Singaporean financial market.
In 2019, the authority announced it was working on a new bill to regulate exchanges, yet another reason why many blockchain and cryptocurrency companies have been trickling in.
With favourable laws, a free-market economy and high internet penetration, Singapore continues to be a darling to investors.
Last year, Singapore was the second most popular location for initial coin offerings (ICOs), behind the United States.
During a 2017 Global Blockchain Business Conference, the MAS MD Ravi Menon said: “Trust underpins all economic transactions. In the absence of direct trust among parties, the alternative is to rely on trusted central parties.”
The country has also been at the forefront of innovation. Various private and government authorities regularly conduct forums with investors, industry experts, entrepreneurs, and visionaries to try and connect different ideas for industry development.
Bitcoin is making a comeback.
Bitcoin’s unit price has more than doubled since November 2018, climbing from S$6,100 (US$4,484) to S$16,318 (US$11,997).
Jurisdictions with favourable operating laws such as Singapore are set to benefit from the rising trends witnessed this year.
The wealth of crypto innovation programs is driving industry growth
The crypto/blockchain industry in Singapore has benefitted from the island’s incubation programs.
Access, Crypto Valley, and Longhash have nurtured some of the most promising crypto companies to emerge in the region. The incubators provide platforms for meetups, membership groups, and facilitate knowledge sharing. Their primary role is to encourage cooperation to bring about the wider adoption of digital money and related technologies, and they are succeeding.
Singapore opens its doors as a haven to all fintech companies. Prospective blockchain or crypto business owners can set up a startup in the country either as a resident or foreigner. This has encouraged many foreign and resident investors and entrepreneurs to pump even more resources in the fintech space.
What does that mean for Bitcoin investors? They can expect the demand for their assets to rise even further as the industry continues to mature and become more competitive.
The future of Bitcoin is bright, and countries with a regulatory framework for cryptocurrency exchanges and an abundance of crypto companies within their borders like Singapore will be at the top of the food chain when digital currencies are adopted worldwide.
