Singapore’s first licensed crypto exchange, Independent Reserve, conducted a retail-focused survey to better understand the underlying potential of the regulated market as the city-state continues to play an active role in boosting crypto adoption across the Asia-Pacific region.
The Independent Reserve survey, which was conducted among Singaporeans of all ages and genders, revealed a strong affinity for various financial opportunities presented by decentralized finance (DeFi) and other investment opportunities.
According to Raks Sondhi, managing director of Independent Reserve Singapore, the country’s rapid crypto adoption is driven by a high level of trust and confidence in crypto’s future, 58% [Singaporeans surveyed] perceive Bitcoin as an investment asset or a store of value.
Supporting the preceding trend, more than half of those polled expressed a willingness to recommend cryptocurrency investments to their friends and family. In 2021, nearly 60% of Singaporean investors believed in the potential of cryptocurrency to achieve widespread adoption. This year, however, 15% of respondents have begun to consider Bitcoin (BTC) as a legitimate form of currency.
According to Independent Reserve, increasing investor trust in the Singapore market boils down to addressing seven key factors: clarity around government regulations, education about how it works, businesses using it, price stability, an option to ensure crypto, ease of access, and use, and non-monitoring.
According to the survey, Singaporean investors will participate the most if government regulations are clarified. It was also discovered that investors from higher-income families were more likely to invest in cryptocurrencies.
The price stability of cryptocurrencies and education were also revealed to be the top factors influencing crypto investor participation. Despite the concerns, interest in cryptocurrency remains on the rise in Singapore, with a continued desire to purchase, 47% plan to increase investment into their current crypto portfolio in the next 12 months.
Independent Reserve concluded the survey by stating that younger adults between the ages of 18 and 25 were the most willing to diversify into DeFi or nonfungible token (NFT) projects.
The Singaporean government approved legislation that gives the Monetary Authority of Singapore (MAS) more authority to respond to crypto firms operating outside of the country.
According to Cointelegraph, the latest legislation will require crypto businesses operating offshore to be licensed and subject to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements.
Alvin Tan, a member of the MAS board of directors, stated in support of the new ruling, Digital token service providers could easily structure their businesses to evade regulation in any one jurisdiction, as they operate mainly online.
To read our blog on “Banks’ confidence could spark a “second wave” of cryptocurrency adoption” click here.