This Southeast Asian nation crowned as the world's most crypto-friendly country
The year 2021 has been a watershed moment for crypto, with some unexpected developments shaking up how governments see crypto and digital currency. The most recent crypto ranking reveals which countries are leading the world in terms of crypto usage.
Financial technology start-up based in Ireland Coincub has released its Q4 2021 Global Crypto Ranking guide. Government policy, financial sector acceptability, tax laws, regulations, and legal requirements are all used to determine the rating.
Quantitative data such as cryptocurrency ownership, bitcoin ATMs, and spending options are also factored into the ranking.
Positive government laws and major banks' readiness to give custodial services are among the ranking criteria. These two indicators show that traditional financial institutions are investing in the cryptocurrency area inside a country.
The rating takes into account institutional adoption, availability of exchanges and wallets, government regulation, DeFi acceptance, financial services, transparency, crypto spending, and bank participation in crypto.
Singapore moves up to the first place from third place in this quarter's rating of the world's most dynamic crypto countries for 2021/Q4, and Australia moves up to the second place from sixth place.
Fintech investments in Singapore increased by 37% to $3.94 billion in 2021, with blockchain and crypto funding accounting for nearly half of the total at $1.48 billion.
Fintech investments in Singapore increased by 47% year on year to $3.94 billion in 2021. Nearly half of the funds were raised through blockchain and cryptocurrency, with $1.48 billion raised across 82 agreements.
According to KMPG's Pulse of FinTech study, the country's fintech sector reached a five-year high of 191 deals, up 37 percent from the 2020s 139 deals. Compared to $2.48 billion in 2020, the total transaction value in 2021 increased by 59 percent across venture capital, private equity, and merger and acquisition deals.
Fintech agreements totaled $2.98 billion in the second half of 2021, up from $1.04 billion in the same time the previous year.
Crypto and blockchain funding has also increased significantly, from $109.75 million in 2020 to $1.48 billion last year. It surpassed payments as the most well-funded fintech industry in Singapore.
Fintech fundraising in Asia-Pacific totaled $27.5 billion last year, with $17.4 billion raised in the second half alone. Venture capital funding increased to $19.6 billion in 2020, up from $11.5 billion in the previous year.
Singapore has risen to the top of the list because of its thriving crypto sector, favorable regulations, and the world's second-highest percentage of crypto owners. In addition, the country has a defined government strategy and legislation to reassure crypto-skeptical investors.
Singapore recently granted Independent Reserve, an Australian exchange, "in-principle" authorization to offer digital payment token services in the city-state, amid a rising market for digital assets in Southeast Asia.
The region has attracted bitcoin providers, fintech entrepreneurs, and seasoned investors during the last three years. In 2020, the overall value of crypto and blockchain transactions was US$0.9 billion, more than double that of 2017, and the number of transactions completed was 710, up nearly 70% from 2017.
Southeast Asia has positioned itself well to take advantage of opportunities in the embryonic digital asset market, thanks to increased macroeconomic stability, a rising consumer class, and developments in its digital infrastructure. These advancements were not made by accident; they were meticulously planned and performed to achieve the results we see today.
Source : Forkast News, ZDnet.com
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