Are Digital Assets And Blockchain Poised To Become Mainstream in Singapore?

Will the pandemic-driven digital adoption drive blockchain growth in Singapore as well?

In 2019, it was reported that some 634 blockchain based businesses incorporated in Singapore, amounting to an estimated market capitalization of US$8.3 billion. More recently, it was reported that Singapore has emerged as a global leader of digital adoption through the COVID pandemic-stricken year of 2020.

With government blockchain project ‘Project Ubin’ moving closer to commercialization, Temasek’s involvement in Facebook’s blockchain-based Libra network, Opencerts managing the digital certificates of 2020 local graduates and more businesses accepting Bitcoin as a way to transact, local businesses are feeling positive about the industry’s prospects going forward.

After the global pandemic hit, Coinhako – the oldest homegrown digital assets trading platform in Singapore – has seen a 80% surge in enquiries about purchasing Bitcoin through the year thus far, and estimates revenue to almost triple 2019’s numbers.

The market-leading platform which has provided access to Bitcoin and other digital tokens for Singapore since 2014, also reported that its current daily trading volume has overtaken numbers during the 3 month ‘cryptocurrency craze’ period back in late 2017 to early 2018.

The commencement of the Payment Services Act earlier in 2020 also signifies the commitment by local regulators to accommodate the companies working around blockchain technology and digital assets.

“Local digital asset businesses have been waiting for the emergence of a regulatory framework to pivot our businesses on for many years now. With all the recent developments, the signs are there that greater things are to come for the local marketplace. Platforms that enable easy access to digital assets through a mix of user experience and pricing will be a winner in the inevitable break into the mass market.” – Yusho Liu, Coinhako Co-founder.

While there has been no definite date on the first issuance of the first licenses for companies in the local space, all these are signs of greater adoption to come in Singapore.