Singapore emerges as the new crypto hub in South East Asia

NEW DELHI: Multiple factors, both financial and geo-political, have caused Singapore to emerge as a major cryptocurrency hub in South East Asia.
China’s crackdown on cryptocurrencies has opened up avenues of a thriving crypto market in other locations.
Whether it is the US moving to take over crypto leadership with cleaner mining resources or Singapore that has welcomed unprotected crypto enthusiasts, exchanges and investors from China into its crypto-friendly haven, the world is witness a shift towards Singapore.
What is more, Singapore has also created a crypto-enabling environment in the country. This has seen the fast growing crypto market in the country boom and an influx of cryptopreneurs from China.
The closure of certain crypto entities subsequent to the Chinese crackdown down and their migration created new opportunities for Singapore. Here are some examples:
* Chinese cryptocurrency exchange Huobi, which is one of the largest in terms of trading volume, has stopped registering new accounts and will close the existing accounts by the end of the year.
* Other crypto exchanges BitMart and BiKi, have taken similar measures.
* The crypto price comparing websites, CoinMarketCap and CoinGecko are no longer functional in China.
* Social media crypto communities such as Weibo have decided to migrate to Twitter, Discord or Telegram.
According to the blockchain security company, PeckShield, there has been a 62 percent increase in capital outflows from Chinese crypto exchanges such as Huobi and Binance to foreign exchanges.
A capital worth $28.3 billion made its way into the foreign exchanges in the first half of 2021, according to Reuters.
Singapore has seen the immigration of many Chinese crypto markets since May, ever since China started tightening its crypto regulations. Some of these are :
* TheChina-based Binance, the world’s largest cryptocurrency exchange, was affected.
* ByBit, Huobi and OKCoin are some other Chinese crypto exchanges, fully operational in Singapore.
* Babel Finance, a crypto financial services company opened a new business headquarter in Singapore in September 2021, amidst extreme fear of a crypto ban.
* Cobo, a crypto asset management and custodian platform, also moved its office recently to Singapore from Beijing.
The crypto-enabling regulated environment of Singapore makes it an attractive and hospitable place for crypto-preneurs. Here’s how:
* Singapore, a key financial centre in Asia has embraced fintech and has been progressively marching towards crypto ownership and trading.
* The Monetary Authority of Singapore (MAS), enforced a crypto-related legislation in 2020 to regulate the crypto industry under its Payment Services Act.
– The regulation primarily saves the users and safeguards the government against money laundering and terrorist financing dangers.
– The act obliges the cryptocurrency exchanges and digital token payment systems to be licensed.
* MAS has granted licenses to some of the big investors like DBS Vickers, the brokerage arm of DBS Bank and Australian crypto exchange, Independent Reserve.
* MAS also mandates crypto firms to share personal information of anyone who makes a transaction beyond a certain limit also called travel value.
* Singapore has clearly set regulatory measures for different crypto activities such as payment tokens, securities, custody, crypto fund management.
Lily Z King, the COO of a Singapore-based crypto asset management company said that this would help Chinese crypto lovers to warm up to the Singapore market.
She believes that South East Asia is a new potential crypto player and Singapore is enabling the crypto boom in the regionby offering an enabling environment for users.
Chia Hock Lai, co-chairman of Blockchain Association, Singapore said that the country offers a suitable environment for crypto research and development, reported Forkast.
The clear regulations and stringent penalties against the wrongdoers and bad actors ensure that.
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