Crypto Cities: Singapore
Cities are a breeding ground for technological innovation and digital advancements by offering a space for talent and businesses alike to come together and shape the future of their city. The rapidly evolving, constantly changing urban landscape offers exciting opportunities for digital innovation and new ways of doing things.
But what makes a city a crypto city? And how are crypto cities contributing to digital asset adoption worldwide? In this new series, we’ll be exploring the benefits cryptocurrency adoption can bring to constantly evolving cities in a rapidly changing global economy.
Singapore: From British Colony to Asia’s Global Finance Hub
A 2022 report by the Global Financial Centres Index has put Singapore as the third most dynamic financial hub, just behind New York and London. The South-East Asian country has overtaken Hong Kong and is now Asia’s top financial centre. Many call Singapore one of the world’s most advanced countries in digital innovation, adoption and transformation.
This comes around 60 years after Singapore reached independence from the British in 1963 and then from Malaysia in 1965. From the 1970s through the 1990s, the city-state experienced steady economic growth. Along with Hong Kong, South Korea, and Taiwan, it was called one of the ‘Four Tigers’ of Asian economic prosperity. Fast forward to 2023: Singapore has kept its place as one of the most established, innovation-focused and wealthiest countries globally.
Eighty of the world’s top 10 tech companies have a presence in the city-state, reinforcing its status as a global tech hub that connects the East and the West and its strategic location right in the middle of the Asia-Pacific region. With its energetic business environment, world-class infrastructure, and global talent, the city-state has created an attractive environment for tech and finance innovation globally. There are over 4000 tech-start-ups in Singapore to this day.
Jefrey Joe, Co-founder of Jakarta-based venture capital firm JWC Ventures, states that while Singapore’s market is smaller compared to neighbouring countries, its strengths make it a hotspot for innovation not just in Asia but globally: “Singapore, with its business-friendly environment and future-ready digital infrastructure, serves as the hub that catalyses the formation of innovative start-ups and supports their growth” (edb.gov).
The Singaporean government has long been focused on creating initiatives that support and foster tech businesses throughout the country. In 2020, the Economic Development Board launched the Entrepreneur Pass, aiming to attract entrepreneurs, business leaders and other tech personas to work, teach and establish their own companies in Singapore. The pass is designed to allow foreigners to advance their personal and professional interests while simultaneously contributing to the country’s tech ecosystem.
While other countries have been struck by economic uncertainty throughout the pandemic, Singapore has created a globally competitive tech industry through constant innovation and being at the forefront of new technologies such as cloud computing, artificial intelligence, digital assets or blockchain technology. The city-state’s focus on sustainability and digital trust are often mentioned as key areas that place Singapore at the forefront of tech innovation.
Jaspreet Singh, founder of data protection software company Druva, states: “With an innovation ecosystem that is made up of advanced infrastructure, an exciting and growing network of startups, diverse and world-class talent with strong technical background, and committed government support that welcomes new businesses, Singapore has become a compelling destination for any business with global aspirations” (techinasia).
A Paradise of Opportunities: Singapore as a Regional Crypto Hub
In recent years, the island nation has become a hotspot for global crypto companies and executives. From warm weather to better tax rates, global talent and licence exemptions: Singapore has it all. Binance CEO Changpeng Zhao is just one of many who have moved to the city-state in recent years. The strategic geographical location and tech innovation make Singapore an ideal place to build a presence in Asia.
In 2019, Chinese crypto billionaire Jihan Wu established the fintech platform Matrixport in Singapore, aiming at providing a supportive environment to nurture fintech and crypto innovations. The company has made use of Singapore’s innovative and supportive framework and is now Asia’s largest crypto financial services platform.
Crypto exchange OSL is one of many businesses that have also recently opened an office in Singapore. Matt Long, head of distribution at OSL, states: “If you look at the environment with respect to regulation, with respect to financial markets, and within that fintech and blockchain, the growth in wealth and asset management, all the positive things that the [Monetary Authority of Singapore] has done — I think the question is why wouldn’t we be setting up in Singapore” (insider)?
As of 2023, Crypto companies must have a licence to operate in Singapore but can get an exemption from the Monetary Authority of Singapore while they wait for their applications to be finalised. Although cryptocurrencies are not yet legal tender in the country, they are labelled as goods that can be used for exchange. Chia Hock Lai, chair of the Blockchain Association of Singapore, states that the simple regulatory process is what makes the city-state so popular with crypto firms (insider).
With its geographically convenient location, business-friendly environment and innovation-focused government, Singapore provides a unique base for new start-ups and established businesses looking to innovate the tech industry. The city embraces digital innovation and the future of finance, and it is this exact excitement and support that draws investors and companies to the so-called Silicon Valley of Asia.
Why Every City Should be a Crypto City
In 2022, Singapore was declared the fifth-wealthiest city in the world and second-richest in Asia, just after Tokyo. The city currently has around 249,800 millionaires. The survey by London-based investment migration consultancy Henley & Partners states: “countries that attract high-net-worth individuals tend to be robust, with low crime rates, competitive tax rates, and excellent business opportunities” (lifestyleasia).
Singapore truly has all that. The excitement, energy and economic transformation the city-state has shown in recent years has no doubt had an incredible impact on the city. New businesses coming to the city mean new job opportunities for citizens. More conferences mean more visitors coming to the city and spending money, which in return supports locals and the city alike.
According to cityam, around 56% of Singaporeans believe that the value of cryptocurrencies will only increase over time. The prominence and popularity of digital currencies as an investment asset are widespread, even among demographics who have never invested before. This shows that Singapore’s history of being at the forefront of tech innovation has led to citizens being open to new technologies and excited about the transformation they can bring to their country.
Who would have thought just a decade back that tech and finance companies would be flocking from hotspots in London and New York to South Asian Singapore? And that Singapore would be ranked as the third most dynamic financial hub globally? The government’s positive outlook on tech and digital assets has transformed the Singaporean tech scene into an innovative ecosystem focused on fostering new ideas that help shape the future locally and globally.
Singapore as a crypto city means opportunities, growth and transformation. The drive to develop innovative, creative technology has brought talent, opportunities and wealth to the country. Supported by generous government funding, it has created a flourishing tech and finance industry and we are looking forward to seeing the benefits this will continue to bring to businesses and citizens alike.
If you missed the first editions of the series, please click below:
~Tina~
