Cryptocurrencies are gaining traction, with loads of Singaporeans now proudly owning some type of the digital money whereas others are eager so as to add it to their funding portfolios, a survey has famous.
It discovered that about 43 per cent of 1,000 individuals polled have cryptocurrency, with 46 per cent saying that they intend to purchase some within the subsequent 12 months.
It additionally famous that 59 per cent of the respondents imagine that the digital foreign money might be adopted on a mass scale sooner or later.
The survey, which was carried out between February and March by shopper insights supplier Toluna, was used to offer knowledge for an index compiled by cryptocurrency alternate Impartial Reserve.
Singapore scored 63 factors on the index, reflecting the nation’s optimistic and progressive attitudes in the direction of cryptocurrency.
Bitcoin hit an all-time excessive of US$64,870 in April, however has been falling in latest weeks, slumping to beneath US$30,000 following China’s crackdown on crypto companies in Could and regulators within the West calling for tighter checks on cryptocurrency.
In the meantime, Singapore laws are seen to be crypto-friendly and have been attracting world cryptocurrency companies to arrange workplaces right here.
Binance, the world’s largest crypto alternate by buying and selling quantity, has a Singapore presence by Binance Asia Providers, whereas Chinese language agency Huobi has its two native associates, Huobi Asset Investments and Huobi Mall.
Mr Raks Sondhi, managing director of Impartial Reserve Singapore, mentioned: “With digital foreign money gaining momentum worldwide, Singapore continues to emerge as a key hub in Asia attributable to its sturdy and well-regulated monetary markets infrastructure and openness to new applied sciences.”
Entities dealing in or facilitating the alternate of cryptocurrency or digital fee tokens (DPT) right here should be licensed and controlled.
Nonetheless, the Financial Authority of Singapore (MAS) doesn’t regulate DPTs and doesn’t set necessities on whether or not companies can settle for DPTs for funds.
The MAS web site exhibits about 100 enterprise entities are offering DPT providers whereas the regulator assesses their purposes for a licence.
These firms have been working underneath a grace interval for the reason that new Fee Providers Act turned efficient in January final 12 months.
Whereas greater than 300 companies have utilized for a licence, none have been issued to any DPT supplier.
The MAS has issued quite a few advisories and highlighted the dangers of investing in cryptocurrency.
Cryptocurrencies will not be authorized tender right here and the costs of most are subjected to speculative swings.
Many cryptocurrency operators don’t have a bodily presence in any particular nation, and with the buying and selling carried out digitally, it could be tough to hint and confirm the authenticity of the operator and their schemes.
The Straits Instances reported in March that cryptocurrency alternate platform Torque, run by Singaporean businessman Bernard Ong, had collapsed after it reported that over US$300 million (S$406 million) had allegedly been misappropriated.
About 3,500 of its 17,700 customers throughout 120 international locations are Singaporeans or traders primarily based right here.
Regardless of the high-profile information of assorted hacks and scams, Impartial Reserve’s research discovered that solely 7 per cent of the respondents assume Bitcoin is a rip-off whereas 76 per cent see it as an funding asset, cash or digital gold.