Cryptocurrency adoption in Singapore has risen despite a hardline approach of the city-state’s financial market regulator, a new survey shows. According to data from Australia-based comparison website Finder.com, 20 per cent of Singaporean adults currently own cryptocurrency, up from 16 per cent late last year. Bitcoin with 33 per cent is the most popular coin among Singaporean crypto owners, followed by Ethereum with 26 per cent. James Edwards, cryptocurrency specialist at Finder.com, says he is surprised that adoption did not decline in the last six months given the considerable drop in the crypto market and increased regulatory scrutiny. “We saw…
Cryptocurrency adoption in Singapore has risen despite a hardline approach of the city-state’s financial market regulator, a new survey shows.
According to data from Australia-based comparison website Finder.com, 20 per cent of Singaporean adults currently own cryptocurrency, up from 16 per cent late last year.
Bitcoin with 33 per cent is the most popular coin among Singaporean crypto owners, followed by Ethereum with 26 per cent.
James Edwards, cryptocurrency specialist at Finder.com, says he is surprised that adoption did not decline in the last six months given the considerable drop in the crypto market and increased regulatory scrutiny.
“We saw huge drops in the price of Bitcoin at the start of May and June which led to declines in crypto ownership in other markets. However, looking at Google Trends the search interest for ‘buy Bitcoin’ in Singapore was actually up week on week when the price was dropping suggesting consumers were hoping to buy the dip,” Edwards said.
Warning to consumers
Earlier this year the Monetary Authority of Singapore (MAS) asked crypto companies to stop mass marketing and issued stark warnings to consumers.
Ravi Menon, MAS managing director, said the city-state is considering new measures that will make it “more difficult” for retail investors to trade cryptocurrencies at a time when they seem to be “irrationally oblivious” about the risks.
“So, if you are looking to invest in cryptocurrency make sure to use an exchange that is licensed with the MAS or has in-principle approval,” Edwards noted.
Customer suitability tests
According to Menon, the MAS may introduce “customer suitability tests” and restrict the use of leverage and credit facilities for cryptocurrency trading. It will seek public feedback on its proposals in October.
Singapore’s initially welcoming approach towards cryptocurrency has helped the financial hub attract digital asset services-related firms from China, India and elsewhere in the last few years, making it a major center in Asia.
However, recent defaults of some global cryptocurrency-related firms based in Singapore, many of which are not subject to the financial regulator’s guidelines on consumer protection or market conduct, have triggered worries about tighter regulation.
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