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Understanding the Cryptocurrency Landscape in Singapore
More than half of finance-savvy Singaporeans have embraced cryptocurrency and consider it the future of finance. A recent report by Seedly and Coinbase, conducted in the fourth quarter of 2023 and encompassing over 2,000 adults, found that 57% of respondents currently hold digital assets.
Investment Trends in Singapore
The majority of respondents said they have invested between US$1,000 and $25,000. Among crypto users in Singapore, “staking” has emerged as the most popular activity over the past year, according to the report.
Staking Popularity
Fifty-five percent of respondents stated that they had engaged in staking crypto through a centralized exchange, while 38% utilized decentralized finance (DeFi) apps. Staking involves crypto holders earning rewards by allocating their existing holdings to validate transactions on proof-of-stake blockchains like Ethereum. It has gained popularity as a low-risk passive income strategy that doesn’t require active trading.
The significant level of staking activity in Singapore highlights the need for providing consumers with reliable, regulated choices while enhancing consumer protection. Regulating delegated staking through a centralized service or exchange would further differentiate it from lending products masquerading as staking, and ensure the constant protection of consumers’ assets.
Market Sentiment and Predictions
Despite occasional market volatility, Singaporeans remain optimistic about the long-term potential of crypto. Fifty-six percent of respondents believe that cryptocurrency is the future of finance, and 46% anticipate price increases over the next 12 months. The survey also revealed that 54% of respondents use stablecoins, while 35% use crypto for remittances.
Crypto Regulation in Singapore
Singapore has been actively engaging with global financial authorities in the realm of digital currencies. In September 2023, the Monetary Authority of Singapore (MAS) completed a joint test of cross-border trading and settlement of wholesale central bank digital currencies in collaboration with the Bank for International Settlements and the central banks of France and Switzerland.
Back in July, Singapore also revealed plans to impose a trust requirement on cryptocurrency exchanges in a bid to instill confidence in the market and protect investors from potential losses. The MAS and the police have been working with lenders in the country to refine their approach to onboarding crypto service providers. The guidelines will also encompass stablecoin, transferable gaming or streaming credits, and non-fungible tokens (NFTs).
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
