Cryptocurrency adoption has risen in Singapore despite a tough stance from the country’s financial market regulator, a new survey shows. According to Australian comparison site Finder.com, 20 percent of Singaporean adults now own cryptocurrencies, up from 16 percent at the end of last year. Bitcoin is the most popular coin among cryptocurrency owners in Singapore with 33%, followed by Ethereum with 26%. James Edwards, a cryptocurrency expert at Finder.com, said he is surprised that adoption has not declined over the past six months, given the sharp decline in the cryptocurrency market and heightened regulatory scrutiny. “We saw…
Cryptocurrency adoption has risen in Singapore despite a tough stance from the country’s financial market regulator, a new survey shows.
According to data from the Australian Comparison website Finder.com20% of Singaporean adults now own cryptocurrencies, up from 16% at the end of last year.
Bitcoin is the most popular coin among cryptocurrency owners in Singapore with 33%, followed by Ethereum with 26%.
James Edwards, Cryptocurrency Expert Finder.comhe was surprised that adoption rates have not declined over the past six months amid a sharp decline in the crypto market and heightened regulatory scrutiny.
“We saw a sharp drop in bitcoin prices in early May and early June, leading to a decline in cryptocurrency ownership in other markets. However, looking at Google Trends, Singapore’s search interest for ‘buy bitcoin’ is actually rising every week, The drop in prices at the time indicated that consumers wanted 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 a stern warning to consumers.
MAS managing director Ravi Menon said the city-state is considering new measures to make it “more difficult” for retail investors to trade cryptocurrencies at a time when they appear to be “irrationally ignoring” the risks.
“So if you want to invest in cryptocurrencies, make sure to use an MAS-licensed or approved-in-principle exchange,” Edwards noted.
Customer suitability testing
According to Menon, MAS may introduce a “customer suitability test” and restrict the use of leverage and credit facilities for cryptocurrency trading. It will seek public feedback on its proposal in October.
Singapore’s initial embrace of cryptocurrencies has helped the financial center over the past few years attract digital asset service-related companies from China, India and elsewhere, making it a major hub in Asia.
However, recent defaults by a number of global cryptocurrency-related firms headquartered in Singapore, many of which are not bound by financial regulators’ guidelines on consumer protection or market conduct, have raised concerns about tighter regulation.
